Elys Game Technology acquires Engage IT Services

Elys Game Technology announced that it has completed the acquisition of a premium software engineering and IT development firm, Engage IT Services. The firm offers best-in-class development of sportsbook and gaming applications for cloud, web, and mobile platforms, user experience development, customized business intelligence, digital transformation consulting, end-to-end project and product management, Microsoft solutions, and other engineering and development projects. The integration of the Engage team within our organization will greatly enhance our in-house engineering capabilities and addresses the abundance of incoming business, including the development of our US product offerings which includes retail opportunities and mobile solutions as well as the development of our global virtual gaming platform and global mobile solutions, while streamlining our current group engineering projects. On the same day the Company also obtained long-term commitments of 6 key IT, engineering, and risk and project management employees through the issuance of incentive shares vesting monthly over a period of 3 years. The deal is structured as an equity acquisition of 100% of the shares of Engage such that Engage will become a wholly owned subsidiary of Elys upon the terms and subject to the conditions set forth in the Share Purchase Agreement. The current Engage and Elys leadership and management team will remain in their current roles and their interest are aligned with that of our shareholders due to the equity nature of this transaction. Pursuant to the Agreement, Elys will issue approximately 3,018,462 shares of common stock, valued at EUR 1.08 million, which purchase price may be increased or decreased dependent upon the net financial position of Engage as determined by due diligence, on or prior to June 30, 2023. Subject to the repurchase option set forth in the Agreement, the Sellers will be restricted from disposing of the Shares for 36 months and the Company may repurchase the Shares issued for EUR 1.08 million in cash up to June 30, 2023.