Global sports betting company Entain has agreed to purchase Sportsflare, Tiidal Gaming’s esports betting solutions firm, for $13.25m (~£10.9m).
The agreement will see Tiidal Gaming sell all of Sportsflare’s shares to Entain.
In the release, it was stated that as of right now the deal has only been negotiated at ‘arm’s length’, meaning that there are still several conditions that must be met for the transaction to go through. One condition is that Tiidal Gaming will need shareholder approval. As such, a meeting regarding the transaction is expected to take place on April 26th 2023.
If the purchase was not to occur due to complications from Tiidal, there is a $500,000 (~£412,000) termination fee that will be payable to Entain.
This isn’t the first time that Entain has invested heavily in the esports space. In 2021, the company purchased esports betting company Unikrn, which officially relaunched in Brazil last year, for a reported £50m. Entain has also launched an esports mental wellness campaign through its non-profit Entain Foundation US.
In August 2022, Tiidal Gaming did announce corporate plans to rebrand to Sportsflare, as well as sell its esports team assets. However, Entain’s purchase will likely have altered some of those plans. Still, Lazarus Esports, Tiidal’s Canadian esports organisation is set to be purchased by game marketing solutions provider TGS Esports, as of February 2023.
Sportsflare is currently a partner of esports data provider Bayes Esports and has been a member of the Esports Integrity Commission since 2021.
Thomas Hearne, Chief Executive Officer of Tiidal, commented on the purchase: “I am incredibly proud of what the Sportsflare team has done over the last year. Given the capital markets environment, we believed it was best to find a great home for Sportflare in order to maximise value for Tiidal shareholders.
“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.”
Tiidal has also secured a loan agreement with Ladbrokes Group Finance, one of Entain’s affiliate brands, as part of the transaction.