Sports betting giant Entain is purchasing esports betting solutions firm Sportsflare for $13.3 million. As part of the agreement, Tiidal Gaming, the parent company of Sportsflare, will sell all of the shares in its subsidiary to Entain.
The move will allow Entain to bolster its esports portfolio. In a press release, the parties said that the deal has been negotiated “at arm’s length,” which means that there are still a number of conditions to be met for the transaction to proceed.
Among those conditions is Tiidal Gaming securing shareholder approval for the deal, with a meeting regarding the transaction set to take place on April 26. Should the purchase not occur due to Tiidal complications, the conditions call for a $500,000 termination fee payable to Entain.
The purchase price will be retained by Tiidal in a holding account for 180 days following the closing, during which it may access the funds to satisfy any working capital adjustment or claims brought by Entain, and up to 20% of the funds to pay reasonable costs related to the deal.
Thomas Hearne, Tiidal CEO, commented: “I am incredibly proud of what the Sportsflare team has done over the last year. Given the capital markets environment, we believed it was best to find a great home for Sportsflare in order to maximize value for Tiidal shareholders.”
“Sportsflare will be a great fit with Entain’s strong presence in the industry and our board of directors is confident that Sportsflare joining Entain is the best long-term solution for its employees and partners,” he added.
This new deal follows prior investments Entain has been making in the esports space. In 2021, the company purchased esports betting firm Unikrn, which officially relaunched operations in Brazil and Canada last year. The platform is expected to expand into more regulated markets this year.
For its part, Tiidal Gaming announced corporate plans to rebrand to Sportsflare last year, and declared intentions to sell its esports team assets. Lazarus Esports, Tiidal’s Canadian esports organization, is set to be purchased by game marketing solutions provider TGS Esports.
Sportsflare counts Flash Markets, which allows users to bet in-game on live esports events, among its innovations. Sportsflare is a partner of esports data provider Bayes Esports and has been a member of the Esports Integrity Commission since 2021.
In connection with the deal, Tiidal entered into a definitive loan agreement with Ladbrokes Group Finance, an affiliate of Entain. This arrangement includes a secured credit facility in the aggregate principal amount of up to NZ $1.7 million ($1 million).
Original article: https://www.yogonet.com/international/news/2023/03/15/66454-entain-to-purchase-esports-betting-solutions-firm-sportsflare-for-133m
