Entain has reached a deal with Tiidal Gaming NZ to purchase the company behind esports betting platform Sportsflare for $13.3m (PS10.9m/EUR12.4m).
Entain will acquire all outstanding and issued shares of Sportsflare under the agreement that was brokered by the Tiidal Gaming Holdings affiliate of Tiidal Gaming Group Corp.
Tiidal will retain the purchase price in a holding account for 180-days after the closing. During that time, Entain may access funds to meet any working capital adjustment or claims, as well as up to 20% to pay reasonable costs associated with the deal.
The agreement was reached at arm’s distance and is subject to certain conditions, including approval by Tiidal shareholders. A vote will be held at a meeting scheduled for 26 April and receipt of all consents.
Additionally, the agreement contains a $500,000 termination payment, which Tiidal Holdings will pay to Entain for certain terminating events.
Sportsflare’s Flash Markets allows users to place in-game bets on live esports events.
Strengthening Entain’s presence in esports
Thomas Hearne, Tiidal chief executive, said that he is incredibly proud of the Sportsflare team’s achievements over the past year. “Given the capital market environment, it was best to find a great place for Sportflare to maximize value for Tiidal shareholders.”
Entain’s strong presence within the industry will make Sportsflare a great fit. Our board of directors is certain that Sportsflare joining Entain will be the best long-term solution to its employees and partners.
Tidal Gaming Group and Tiidal Holdings entered into definitive loan agreements with Ladbrokes Group Finance (an affiliate of Entain) in connection with this deal. The agreement includes a secured credit facility with an aggregate principal amount up to NZ$1.7m. An advance of NZ$1.2m was made on February 2.
If the acquisition is not completed in time but not terminated, further advances of NZ$250,000 this month and NZ$250,000 next months will be made.
Building on Unikrn relaunch
This acquisition will further enhance Entain’s presence within the esports gambling vertical. It follows the relaunched Unikrn last December.
Entain purchased Unikrn’s platform, product and technology on October 2021. The company then closed its customer-facing operations to allow for redevelopment.