Tiidal Confirms Plans to Sell Sportsflare to Entain

Esports and gaming platform company Tiidal Gaming Group and its subsidiary, Tiidal Gaming Holdings, confirmed they have entered into an agreement to sell all shares of their operating subsidiary, Tiidal Gaming NZ, the parent company of Sportsflare, a leading provider of wagering products with a focus on the esports vertical, to Entain. The new acquisition with a price tag of $13,250,000 was announced Monday. For that sum, Entain is expected to acquire all of the shares of Sportsflare from Tiidal Holdings.

A statement released by Tiidal Gaming explains that the purchase price “will be retained by Tiidal in a holding account for 180 days following the closing.” For that time, the company confirmed that it may access those funds “to satisfy any working capital adjustment or claims brought by Entain.”

“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,“

explains a statement released by Tiidal Gaming Group

Tiidal to Seek Approval from Shareholders for the Acquisition

Keeping in mind the size of the acquisition, Tiidal would need to secure the approval of shareholders. There are approximately 31 million common shares or 37.29% of the shares of the company that are held by shareholders. In order to close the acquisition, Tiidal would need to secure the approval of those shareholders.

The approval may be granted during a meeting between the shareholders and the company planned for April 26, 2023. Currently, Tiidal’s Board of Directors has approved the terms of the acquisition and at the same time, recommended the shareholders to vote in favor of the transaction. Besides the shareholder approval, the transaction is subject to other customary conditions. Under the purchase deal, Tiidal Holdings is subject to a $500,000 termination fee that is payable to Entain based on specific termination conditions.

“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.“

Thomas Hearne, CEO of Tiidal

Thomas Hearne, Tiidal’s CEO, acknowledged that Sportsflare has seen significant success in the last year. Moreover, he predicted that the sale will help maximize the value for the company’s shareholders. Hearne said that Sportsflare will boost Entain’s presence within the vertical. In conclusion, he explained that the platform will deliver long-term benefits for Entain and its partners.