Entain has agreed a deal to acquire Tiidal Gaming NZ, the company behind esports betting developer Sportsflare, for $13.3m (£10.9m/€12.4m).
Under the agreement concluded with Tiidal Gaming Holdings subsidiary of Tiidal Gaming Group Corp. Entain will acquire all issued and outstanding shares of Sportsflare.
The purchase price will be held by Tiidal in a deposit account for 180 days after closing. During this period, Tiidal may access the funds to meet any working capital adjustments or claims of Entain and up to 20% of the funds to pay reasonable expenses related to the deal.
The deal was negotiated at arm’s length and remains subject to certain conditions, including the approval of Tiidal shareholders, with the vote scheduled to take place at a meeting on April 26, and the receipt of all necessary consents.
In addition, the Agreement includes a termination fee of $500,000 to be paid by Tiidal Holdings to Entain in the event of certain termination events.
Sportsflare’s innovations include flash markets, which allow users to bet on live esports events in-game.
Strengthening Entain’s presence in e-sports
“I am incredibly proud of what the Sportsflare team has achieved over the last year; Given the capital markets environment, we felt it was best to find a great home for Sportflare to maximize value for Tiidal shareholders,” said Thomas Hearne, CEO of Tiidal.
“Sportsflare will be an excellent fit with Entain’s strong presence in the industry and our board is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners.”
In connection with the transaction, Tidal Gaming Group, Tiidal Holdings and Sportsflare entered into a definitive loan agreement with Ladbrokes Group Finance, a subsidiary of Entain. This agreement includes a secured credit facility with an aggregate principal amount of up to NZ$1.7 million, of which an advance of NZ$1.2 million was made on February 2nd.
If the acquisition is not completed but not completed on time, further advances of NZ$250,000 will be made this month and NZ$250,000 next month.
Building on the Unikrn relaunch
The acquisition further strengthens Entain’s presence in the esports betting sector and follows the relaunch of Unikrn in December last year.
Entain acquired Unikrn’s product, platform and technology in October 2021 and subsequently closed its customer-facing operations for new development.