- The stock price of MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) has increased by over 60% pre-market. This is why it happened.
The stock price of MER Telemanagement Solutions Ltd. (NASDAQ: MTSL) – a global provider of telecommunications expense management, call accounting and contact center software – has increased by over 60% pre-market. Investors are responding positively to the company announcing that it has entered into a definitive Agreement and Plan of Merger with SharpLink, a leading online technology company that works with sports leagues, fantasy sports sites and sports media companies to connect fans to relevant and timely betting content sourced from its sportsbook partners.
And upon the closing of the merger – which is conditioned upon approval of MTS shareholders and other standard closing items – the company will change its name and pursue the business of SharpLink under new management and Board control.
Launched by industry veterans with extensive experience developing and selling enterprise-level sports technology solutions, SharpLink is an early innovator in the sports betting conversion marketplace. And SharpLink currently has contractual relationships with sports teams, media companies and league operators, including the PGA TOUR and NASCAR. Both utilize SharpLink’s legacy “free-to-play” game platform to enhance user engagement and gaming strategies. More recently, the PGA TOUR and NASCAR have leveraged SharpLink’s conversion platform to introduce dynamic and real-time sports betting content from multiple sportsbook partners.
Morgan Stanley is estimating that the online sports betting market will generate over $9.2 billion in annual revenue in the U.S. alone by 2025 with the international market currently several times that amount. And according to internal research, an estimated $20 billion has already been invested in acquisitions and partnerships by gaming operators, sports leagues and media companies as the industry rapidly expands and prepares for betting growth in the U.S. Currently 22 states allow online sports betting, including New York, which passed the new legislation just last week. SharpLink’s engagement technology delivers personalized sportsbook betting offers and engaging experiences for fans who are interested in legal online betting.
“We are excited to achieve this major milestone by signing the definitive merger agreement with SharpLink, and we believe the transaction, when closed, will provide significant value to both the current MTS shareholders and the SharpLink shareholders who will be receiving MTS shares in the Merger. Following the merger, our Company will be on the leading edge of a potentially massive sports betting market in the U.S. and globally. By providing proprietary advanced conversion and engagement solutions for the sports betting industry, we expect SharpLink’s services will be needed by many companies looking to capitalize on this opportunity. We are excited about our future growth strategy as well as the current industry’s rapid expansion both in the U.S. and globally. We encourage all shareholders to look for our mailed proxy materials in the near future and to support this proposed transaction.”
— Roy Hess, MTS CEO
“As sports betting legislation continues to be enacted across the United States, which we are seeing at an accelerated pace as states look to fill budgetary gaps, any company that has an audience of sports fans will have the opportunity to earn additional revenue by opening a channel for that audience to place legal, online bets. We believe SharpLink is well-positioned to provide leagues, media and sportsbook operators – many of whom are already customers — the tools they need to manage and capitalize on this opportunity by using our innovative analytical solutions, not simply advertising banners or buttons. SharpLink’s turnkey intelligent solutions allow these companies to implement advanced technology right out of the gate, and quickly start connecting their users to real-time sports betting content.”
“The sports betting market is shifting rapidly and is beginning to recognize the need for analytically based betting solutions. We expect this merger to provide SharpLink greater access to the capital markets so that we may scale effectively to meet demand, continue to innovate, and sharpen our portfolio of businesses and technology. We thank the professional team at MTS for their dedication and hard work getting this deal towards a rapid closing – we cannot do it without them.”
— Rob Phythian, CEO of SharpLink
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