Entain to acquire esports betting developer Sportsflare – M&A

Entain, a leading global sports betting and gaming company, has finalized an agreement to acquire Tiidal Gaming NZ for $13.3 million (£10.9 million/€12.4 million). This strategic move positions Entain at the forefront of the esports betting segment, leveraging Tiidal’s cutting-edge esports betting developer, Sportsflare.

Under the terms of this agreement, facilitated by Tiidal Gaming Holdings, a subsidiary of Tiidal Gaming Group Corp, Entain will procure all issued and outstanding shares of Sportsflare, enhancing its portfolio in the rapidly growing esports betting market.

The acquisition price will be managed through a holding account established by Tiidal for a period of 180 days post-closing. During this timeframe, Tiidal may utilize the funds to address any working capital adjustments or to settle claims put forth by Entain. Additionally, Tiidal is allowed to allocate up to 20% of the funds for reasonable expenses associated with the acquisition.

While this deal has been negotiated on an arm’s-length basis, it is contingent on specific conditions, including the necessary approval from Tiidal’s shareholders. A vote is scheduled for April 26, along with compliance from all relevant regulatory authorities.

Moreover, the agreement stipulates a termination fee of $500,000, which Tiidal Holdings will owe to Entain should certain terminating events occur.

Sportsflare has made a name for itself with innovative products such as Flash Markets, which enables users to place in-game bets on live esports events, exemplifying the potential for increased engagement within this niche market.

Strengthening Entain’s Position in Esports

The strategic acquisition of Sportsflare underscores Entain’s commitment to cementing its leadership within the esports betting landscape. Tiidal’s CEO, Thomas Hearne, expressed optimism regarding the partnership, stating, “I am incredibly proud of what the Sportsflare team has achieved; in light of the current capital markets environment, we sought to secure the best possible home for Sportsflare to maximize value for Tiidal shareholders.”

Hearne added, “Sportsflare’s integration with Entain aligns perfectly with our strengths in the industry, and we firmly believe that this partnership presents the best long-term solution for the employees and stakeholders involved.”

As part of the transaction, Tiidal Gaming Group, Tiidal Holdings, and Sportsflare have entered into a definitive loan agreement with Ladbrokes Group Finance, a subsidiary of Entain. This arrangement comes with a secured credit facility amounting to up to NZ$1.7 million, of which an initial advance of NZ$1.2 million was issued on February 2. Should the acquisition proceed without termination, additional advances of NZ$250,000 are earmarked for disbursement this month and the next.

Building on the Unikrn Relaunch

This acquisition not only fortifies Entain’s foothold in the esports betting sector but also builds upon the recent relaunch of Unikrn, which occurred in December of the previous year. Entain initially acquired Unikrn’s technology, product offerings, and platform in October 2021, subsequently pausing customer-facing operations to redevelop its offerings.

The acquisition of Sportsflare represents a vital step in Entain’s comprehensive strategy to dominate the esports betting vertical, ensuring that the company remains ahead of the curve in a sector characterized by rapid growth and innovation.