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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

M&A

HeadsUp Entertainment International firms acquisition of Spinola, eyes expansion

Valuations completed by the company concluded that the value of the agreements presently in place could generate more than $150 million in revenue.

HeadsUp
Photo by Waldemar Brandt on Unsplash

HeadsUp Entertainment International (OTCPINK:HDUP) completed its acquisition of global lottery software provider, Spinola Gaming today.

The final step involving paying out all previous third party shareholdings of Spinola companies allows HeadsUp to finally finalize agreements for the full acquisition of Spinola and its related companies. The buyout was imperative for HeadsUp to close the acquisition, which includes licenses to operate across parts of Europe, Latin America and other regulated markets.

The acquisition is part of HeadsUp’s strategy across the charity, lottery and gaming space, and the takeover of Spinola will allow the company to expand into new global markets, but also get to work on its existing strategies with its full range of Lottery, Instant Win and other charitable fundraising initiatives. The deal makes sense for Headsup, which is a global gaming operator and media company working with the online gaming, online poker, eSports, sports betting, online lottery, mobile 50/50, charity fundraising platforms, software and blockchain based payment solutions.

Independent valuations completed by the company concluded that the value of the agreements presently in place could theoretically generate more than $150 million in revenues with room for expansion, considering the new contracts presently in negotiations. The value of this acquisition is substantial, as the due diligence process that HeadsUp management went through prior to making the decision to go ahead came in with valuations of USD$65 million and $72 million, respectively.

The reason why is that Spinola’s present contracts range from markets in Colombia, Peru, Brazil and other Latin American markets. Beyond the Latin American market opportunity, Spinola has other projects scheduled for release in Q4, 2022, in 6 African Nations and a first time National Lottery product in The United Arab Emirates, which will be introducing the World’s Biggest Lottery Jackpot across the world.

The global lottery industry is presently generating around USD$300 billion in annual revenues with 95 per cent of these transactions coming from casinos and other brick and mortar physical outlets. That doesn’t necessarily mean that the increase in online and ecommerce activity on a global stage don’t mean a substantial growth opportunity as more state and national operations move their gambling options online. In the coming years, the value of online gambling across the world is anticipated to reach 15-20 per cent of the total pie, representing $45-60 billion in annual online lottery transactions.

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