NorthStar Gaming Holdings Inc.’s acquisition of Slapshot Media Inc. positions the company to capitalize on regulated markets in other Canadian provinces that arise in the future, according to the company’s chief executive officer.
“The acquisition of Slapshot expands our ability to enter new markets faster as we look to introduce NorthStar Bets to consumers across the country,” said Michael Moskowitz, CEO and founding partner of NorthStar in a statement. “We are hyper-focused on growing the reach of NorthStar and this strategic acquisition and partnership further positions NorthStar for rapid growth into new markets within Canada.”
NorthStar announced they have acquired 100 percent of the issued and outstanding shares of Slapshot, a Canadian igaming-marketing and managed-services company that specializes in providing services to Spreads.ca, an igaming site owned and operated by the tribal Abenaki Council of Wolinak in Quebec. The deal is worth $1.8 million, payable in 3,272,727 common shares of NorthStar at a value of $0.55 per share. Slapshot vendors will also be entitled to a separate earn-out of up to $500,000 based on the revenue performance of Slapshot for the 12-month period after the closing of the deal, anticipated to be on or before May 5, payable quarterly in NorthStar common shares.
Spreads.ca, which offers casino games, sports betting, and live-dealer options, will not be made available in Ontario. NorthStar Bets is regulated and operating in Ontario.
NorthStar and Playtech plc announced a partnership in February, with the objective of focusing on expansion opportunities across all of Canada. Completion of this deal is subject to TSX Venture Exchange approval.
In February, NorthStar announced a $12.25 million strategic investment deal with Playtech, the gambling-industry tech company. Playtech is acting as a strategic investor and advisor to NSG, most notably online operations, managed services, and market expansion. The announcement in February was an expansion of their partnership, a new 10-year agreement.
