Entain completes CAD$13.2m Sportsflare purchase

Entain has successfully finalized its acquisition of Tiidal Gaming NZ, the parent company of esports betting developer Sportsflare, for a total consideration of CA$13.2 million (£7.9 million/€9.2 million/US$9.9 million).

With this strategic acquisition, Entain bolsters its portfolio by incorporating a suite of innovative esports betting solutions. Notably, Sportsflare offers a groundbreaking bet builder—the first of its kind exclusive to esports—which will enhance Entain’s offerings. Additional features include micro-markets tailored for esports events and an innovative platform that allows gamers to wager on their own performance metrics.

The agreement was initially struck in March, resulting in Entain acquiring all issued and outstanding shares from the supplier. The agreed-upon purchase price will be held in trust by Tiidal for a duration of 180 days, allowing them to draw upon these funds to address any necessary working capital adjustments. Furthermore, Tiidal is permitted to access 20% of the total amount at any point to cover reasonable expenses associated with the transaction.

As part of this deal closure, Tiidal’s CEO received a grant of 2,500,000 restricted share units in alignment with his employment agreement. Additionally, 1,910,700 common shares were distributed to personnel associated with Sportsflare.

With these transactions, Tiidal has a total of 87,603,908 shares issued and outstanding.

Upon the announcement of the acquisition, Thomas Hearne, CEO of Tiidal, remarked that Sportsflare would integrate well into Entain’s established market presence, further stating that this deal would “maximize value for Tiidal shareholders.”

Entain’s Strategic Moves in the Esports Sector

The completion of this acquisition is a pivotal step in Entain’s ongoing expansion within the esports domain. In December of the previous year, the company reintroduced Unikrn, the esports betting platform it acquired in October 2021. This initiative was part of a broader strategy to leverage Unikrn’s advanced technology in regulated markets.

In March of this year, shortly following the Tiidal acquisition announcement, Unikrn entered a multi-year partnership with Blast, a prominent player in the esports entertainment sector. This collaboration ensures Unikrn’s visibility within Blast’s event itineraries and promotional activities.

Entain’s Mergers and Acquisitions Strategy

To further its ambitions in the esports vertical, Entain is investing in disruptive technologies via its innovation hub, Ennovate. This London-based facility has allocated £100 million towards developing virtual reality and blockchain technologies, with £40 million earmarked specifically for UK startups.

Encouraging growth within its core real-money gaming operations, Entain is engaging in strategic regional acquisitions. Notably, the company is reinforcing its foothold in the Netherlands through the acquisition of BetCity and expanding within the Baltics by acquiring Enlabs. In Eastern Europe, Entain’s influence has been extended through its purchase of Croatia’s SuperSport, while collaborating with Czech investment firm Emma Capital to explore further acquisition opportunities in the region.

Last week, Entain provided an update on its latest M&A activities, announcing its 25-year partnership with Tab NZ and detailing plans to acquire the affiliate service 365scores, which were made public in April.