Entain Acquires Tiidal Gaming for $13 Million
Entain is set to welcome Sportsflare into it is fold via the purchase from Esports and gaming platform provider Tiidal.
Gaming and sportsbook operator Entain agreed on Monday to purchase Tiidal Gaming Group and its subsidiary – Tiidal Gaming Holdings– for a total of $13,250,000. But the deal hasn’t been officially sealed yet as Tiidal needs approval from its shareholders first.
They currently hold 37.29 per cent of the company in the form of 31 million common shares.
Informing shareholders of it is intention to sell to Entain, Tiidal’s Board of Directors issued a statement on Friday stating: “Pursuant to the terms of the Purchase Agreement, Tiidal Holdings has agreed to sell all of the issued and outstanding shares of Sportsflare to Entain for consideration of $13,250,000 in cash, subject to standard transaction adjustments.“
The statement went on to advise shareholders that Entain was the best way forward for the esports betting provider: “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.“
The sentiment was backed up by Tiidal CEO Thomas Hearne, acknowledging that Entain had achieved major success over the past year. Sportflare, he said, would boost Entain’s presence further within the sector and deliver long-term benefits for the UK-based company.
BDO Canada LLP has also voiced its approval of the deal, reassuring any doubting shareholders: “To the effect that, subject to the assumptions, limitations and qualifications set out in such opinion, the consideration to be received pursuant to the Transaction is fair, from a financial point of view, to the shareholders of the Company.”
The sale of Sportsflare, currently known as Tiidal Gaming NZ Limited, is expected to go through without a hitch, due to the fact many of the shareholders have already backed up Hearne’s words. In fact, the deal could be confirmed next month when Tiidal executives will learn at a meeting scheduled for April 26 whether or not the shareholders agree to the acquisition.
Should the agreement fail to go through, Tiidal Holdings would be obliged to pay a termination fee of $500,000 to Entain. The purchase cash is currently sitting in a holding account for Tiidal, where it will remain for 180 days following the closing of the deal. In the meantime, Tidal can access the money to finance the ongoing working capital of Sportsflare, the Tiidal Gaming Group Inc. and Tiidal.
