Better Collective has completed the acquisition of HLTV.org Aps for a total price of up to 34.5 mEUR (257 mDKK). The global mega brand HLTV.org is the leading esports platform in the world focusing on the popular game “Counter-Strike: Global Offensive (CS:GO)”. 

Better Collective has established a strong position within the esports betting market through the acquisition of an HLLTV ApS, which includes the assets HTLV.org and dust2.dk Better Collective pays up to 34.5 mEUR for the brands that are among the most popular Counter-Strike: Global Offensive (CS:GO) platforms for esports enthusiasts.

The purchase price is agreed at up to 34.5 mEUR (257 mDKK) on a cash and debt free basis. Out of the total purchase price, 26.4 mEUR (197 mDKK) will be paid upfront, of which 23.7 mEUR (177 mDKK) in cash and shares of Better Collective A/S with an approx. market value of 2.7 mEUR (20 mDKK) to be issued no later than March 13, 2020. The share price of 90.26 SEK is determined as a weighted average over 10 trading days prior to closing.  

The remaining up to 8.1 mEUR (60 mDKK) is structured as three separate earn out payments to be paid out in the coming three years subject to HLTV ApS reaching certain financial performance criterias. At the sole discretion of Better Collective, up to half of the earn out payments can be paid in Better Collective shares.

The new shares to be issued as part of the initial payment as well as any shares paid as part of the future payments will be subject to lock-up periods. 

Securing a strong position for Better Collective within the esports industry
Founded in 2002 in Denmark, the esports platform HLTV is the leading CS:GO site in the world, providing news from the esport industry, CS:GO match information and player and team rankings to the global esports audience.

For years, the site has been the most popular site for CS:GO enthusiasts across the world. It is the brand behind the official CS:GO World Ranking as well as the CS:GO Player of the Year Award. On average, the website has more than 26.5 million visits per month. 

HLTV also hosts a fantasy section, where the community users compete against each other through virtual teams consisting of real CS:GO players that community users pick for their individual team.
    
The main business model of the platforms is to promote and advertise esports betting operators. During the last financial year, from July 1st 2018 to June 30th 2019, the platforms generated approximately 5 million EUR in revenues with earnings before tax of approximately 3,5 mEUR.

Better Collective will consolidate the acquired company into the Better Collective Group accounts.

The founders of HLTV ApS will continue as daily management for at least three years to ensure the continued strong development of the platforms and communities.  

Jesper Søgaard, CEO of Better Collective, says: “We have carefully analysed and monitored esport for a long time. It is a rapidly growing  industry and we consider esports an ideal extension to our sports focused business. The nature of esports betting differs significantly from traditional sports betting and, therefore, it was essential to find the right partner, adding deep know-how and industry knowledge to Better Collective. I am confident that, through this acquisition, we have found the right people who operate some of the best-positioned esport brands in the world.

We expect strong synergistic effects as many of the betting operators we collaborate with today also offer bets on esports, so I look forward to a prosperous esports future for Better Collective together with our new colleagues.”  

Martin Rosenbæk, CEO of HLTV, says: “Joining the Better Collective group will support our ambition to remain the preferred CS:GO brand for esports enthusiasts across the world. Esports is an industry that is rapidly growing and evolving and, through constructive discussions with the Better Collective management, it became clear that they are the optimal partner for us to realize the full potential of our platforms.”  

“With more than 15 years of experience within sports betting, the Better Collective group has a deep understanding of sports communities and how to utilize technology to enhance the player experience. Combining this with the experience we have gathered from developing within the CS:GO community, we are strongly positioned to grow and build even stronger brands and experiences that will benefit the global network of CS:GO fans and our business.”