Canadian information technology company Intema Solutions has signed a letter of intent to acquire Livestream Gaming Ltd, owner of esports betting platform LOOT.BET.
The transaction will see Intema acquire all of the issued and outstanding Livestream securities for $14.75m (~£10.6m).
A further $3m (~£2.157m) will be paid out if Livestream hits outlined revenue targets following the closing date, consisting of $7.5m (~£5.39m) generated revenue in the first 12 months and $11.25m (~£8m) after 24 months.
Laurent Benezra, President and CEO of Intema, commented on the acquisition in a release: “This is a pivotal transaction for Intema that will make us a leader in esports betting. LOOT.BET will be a significant part of our ecosystem, which now consists of not only esports betting, but also peer-to-peer gaming, esports tournaments and advertising through HypeX.gg, Advertiise and TheSMACK.gg.”
LOOT.BET is a Curaçao-licensed esports betting platform that launched in 2016 under the stewardship of Livestream and Ultraplay. The platform has over 450,000 registered users and recorded a gross gaming revenue of $3.22m, according to a release.
Peter Zhalov, CEO of Livestream, added: “Intema was a logical next step for LOOT.BET to pursue its growth, as it will allow us to expand into new markets in North America and benefit from synergies with complementary businesses to drive more traffic and thus more revenue.”
Esports Insider says: This is a positive move for LOOT.BET, which will now presumably have more resources and relationships to expand into the North American market with its product. The wagering platform has become one of the few stand-out brands in the space and it will be interesting to see how it grows from this point on.