Lastest M&A announcement from Entain has been the completion of its acquisition of Sportsflare for (Canadian) $13.25 million, a wholly-owned subsidiary of Tiidal Gaming Group registered as Tiidal Gaming NZ. The deal was first reported in March for the sale of substantially all of the assets and operating activities of of Sportsflare.
Tiidal Gaming Group shares C.TIDL are trading at 0.09 (+0.1cent)
Under the terms of the deal, Tiidal Gaming group will hold the (Canadian) $13.25 million for a period of 180 days and may settle funds for capital adjustment. Claims will also be considered for transaction related costs by Entain of up to 20 percent.
The board of directors of the Company will assess the available options to return capital received pursuant to the sale of Sportsflare to its shareholders following the expiry of the Holding Period. Any such options will be subject to the receipt of corporate, securities and tax laws advice, and will be subject to the receipt of all required shareholder, regulatory and Canadian Securities Exchange approvals. There can be no assurances that any such options will be implemented by the company.” – Sportsflare Press Release
Further details of the closing transaction include a grant of 2,500,000 restricted shares to Tiidal CEO Thomas Hearne, pursuant to an employment agreement.
Sportsflare great fit for Entain
This latest acquisition further enhances Entain’s portfolio in international esports and expands the company’s position in North America where Tiidal is a listed business on the Canadian Stock Exchange.
A further 1,910,700 shares will be distributed to Sportsflare staff ‘in satisfaction of the earn out entitlements achieved’ according to the asset purchase. Following this share distribution, Sportsflare has 87,603,908 common shares issued and outstanding.
Earlier this year, Hearne stated that Sportsflare would make a ‘great fit with Entain’s strong presence in the industry’. He pointed out that the firm’s board of directors was confident of the acquisition as ‘the best long-term solution’ for the brand. Over the years Sportsflare has positioned itself as an authority in esports. It has collaborated and partnered with a number of prominent players in the industry such as Bayes.
Entain has been looking out for opportunities in both esports and the Americas after having acquired the Unirkn platform last year. It has also relaunched its business in Brazil and holds a prime position in the sector stated the Group CEO Jette Nygaard-Andersen after the acquisition.
The competition of the sale marks yet another major development for Entain, which just this week released its plans and projections for its partnership with TAB NZ.
Entain Plc (ENT.L) is trading at GBp1,286.50 (-0.81 percent)