Merger of two companies in the iGaming industry

CLIENT

iGaming Company

INDUSTRY

Entertainment

SERVICE

Technical Due Diligence

Project

Our client, an innovative platform revolutionizing the micro-betting landscape for sporting events, embarked on a strategic journey to enhance its offerings and solidify its market position.

Known for its quick-result betting features and commitment to responsible gambling, the company aimed to provide an even more engaging and entertaining user experience. The opportunity arose to acquire a leading sports and entertainment technology company, prompting the company to seek a partnership with Sphere for comprehensive Technical Due Diligence.

The Challenge & Scope of Work

The acquisition presented a unique set of challenges and opportunities. The company needed to ensure that the technology of the potential acquisition was compatible with its existing platform, could scale according to future growth plans, and adhered to the highest standards of security and performance.

The Sphere team initiated the assessment with three parallel workstreams.

Architecture, Design, and Solution Performance

Evaluating the complexity and structure of the platform, the design framework, security approach of third-party integrations, the data storage model, and protection methods.

Code

The team assessed the code’s complexity for scalability, the use of third-party components and dependencies, the level of technical debt, and the quality processes in place (automated vs. manual).

Infrastructure

A thorough review of cloud hosting (including any non-cloud elements), the maturity of CI/CD or release processes, and a summary of necessary tools, their purposes, and costs were conducted.

The Outcome

The diligent assessment led to insightful discoveries and actionable recommendations. We successfully confirmed the scalability potential and integration compatibility. However, assessment also showed deviations from best practices, including lack of test coverage which could lead to software failures, system crashes or security breaches, and high complexity of the codebase with gaps in documentation.

These findings helped the buyer make an informed decision regarding the acquisition, fully understanding the technological landscape and potential integration challenges.

Key Achievements

Enhanced Platform Compatibility

The assessment ensured that the acquired company’s technology seamlessly integrated with the buyer’s platform, enhancing overall system architecture and design.

Security and Performance Optimization

Recommendations for improving data protection methods and optimizing solution performance were implemented, elevating the company’s commitment to providing a secure and efficient user experience.

Scalability for Future Growth

Even though some potential scalability limitations were addressed, the platform’s capability to support a 5x growth without significant rewrites was confirmed, which gave the buyer required reassurance.

Infrastructure and Process Improvement

The review of infrastructure and cloud services, along with the evaluation of CI/CD processes, led to significant improvements identified, reducing operational costs by 30% and streamlining development workflows.

Takeaways

  • The client had a smooth integration process post acquisition and a clear list of actions to address.
  • Reduced the operational cost by 30% on infrastructure support without losing the quality.
  • The client has successfully transformed the acquisition into a scalable solution resulting in increase in performance and revenue.