Through the acquisition of Sportsflare, Entain will expand its range of betting products specifically designed for esports. This includes a unique bet builder for esports, as well as micro-markets and a betting solution for gamers to wager on their own performance.
In March, Entain finalized the deal to purchase all issued and outstanding shares in Sportsflare. The purchase price will be held by Tiidal for 180 days, during which they can access the funds for any necessary working capital adjustment. Tiidal is also allowed to use 20% of the funds to cover reasonable costs related to the deal.
At the conclusion of the deal, Tiidal granted 2,500,000 restricted share units to its CEO as part of his employment agreement. Additionally, 1,910,700 common shares were issued to Sportsflare personnel. This brings the total number of shares issued and outstanding for Tiidal to 87,603,908.
Thomas Hearne, CEO of Tiidal, expressed that Sportsflare will be a perfect addition to Entain’s strong presence in the esports industry. He believes this deal will maximize value for Tiidal shareholders.
This acquisition is a continuation of Entain’s recent investments in the esports sector. In December of last year, Entain relaunched Unikrn, an esports betting brand that it acquired in October 2021. As part of the agreement, Entain gained access to Unikrn’s technology and esports betting platform.
Entain is also actively supporting its esports plans through investments in disruptive technologies via its innovation hub, Ennovate. The hub based in London is investing £100m in virtual reality and blockchain solutions, allocating £40m specifically to UK businesses.
In terms of M&A activity, Entain has been growing its core real-money gaming business through regional acquisitions. They have been focusing on expanding in the Netherlands with the acquisition of BetCity and in the Baltics with Enlabs. Additionally, they increased their presence in Eastern Europe through the acquisition of Croatia’s SuperSport. Entain is partnering with Czech investment fund Emma Capital to explore further opportunities in the region.
Lastly, Entain has recently updated the market on two other M&A deals. They entered into a 25-year partnership with Tab NZ last month and announced plans to acquire affiliate 365scores in April.
