Business
Israel-Based Entrypoint Buys Legacy Telecommunications Business From SharpLink Gaming
ISRAEL-BASED ENTRYPOINT BUYS LEGACY TELECOMMUNICATIONS BUSINESS FROM SHARPLINK GAMINGMINNEAPOLIS, MN / ACCESSWIRE / November 10, 2022 / SharpLink Gaming Ltd.
About this update from Sharplink, Inc.
[{"type":"text","content":"ISRAEL-BASED ENTRYPOINT BUYS LEGACY TELECOMMUNICATIONS BUSINESS FROM SHARPLINK GAMINGMINNEAPOLIS, MN / ACCESSWIRE / November 10, 2022 / SharpLink Gaming Ltd. (Nasdaq:SBET) (\"SharpLink\" or the \"Company\"), a pioneer of targeted, data-driven user engagement and conversion solutions for the U.S. sports betting and iGaming industries, today announced that Israel-based Entrypoint South Ltd. (\"Entrypoint\"), a subsidiary of Entrypoint Systems 2004, Ltd., has signed a Share and Asset Purchase Agreement with the Company to acquire SharpLink's legacy Mer Telecommunications Systems business (\"Legacy MTS\") in a one-year earn-out transaction, subject to customary closing conditions and required regulatory approval from the Israel Innovation Authority.In consideration of Entrypoint acquiring all rights, title, interests and benefits to Legacy MTS, including 100% of the shares of MTS Integratrak Inc., one of the Company's US subsidiaries, it will pay SharpLink an earn-out payment equal to three times Legacy MTS' Earnings Before Interest, Taxes and Depreciation (\"EBITDA\") for the year ending December 31, 2023, up to a maximum earn-out payment of $1 million (adjusted to reflect net working capital as of the closing date).Legacy MTS's business concentrates on worldwide provision of telecom expense management (\"TEM\") solutions which assist enterprises and organizations to make smarter choices with their telecommunications spending at each stage of the service lifecycle, including allocation of cost, proactive budget control, fraud detection, processing payments and spending forecasting. In July 2021, SharpLink merged with Mer Telemanagement Solutions Ltd., which at the time owned the Legacy MTS business, in a go-public transaction. Following the merger, SharpLink has operated Legacy MTS and its related subsidiaries as a business unit which has been reported in financial filings as its Enterprise TEM segment. In June 2022, SharpLink's Board of Directors provided management with approval to enter into negotiations with prospective buyers of Legacy MTS due to the fact that Legacy MTS's business is not complementary nor of any strategic benefit to SharpLink's focus on the emerging U.S. sports betting and iGaming industries.Commenting on the transaction, Rob Phythian, Chief Executive Officer of SharpLink, stated, \"We are pleased to have fou...