- Enthusiast Gaming has acquired Vedatis SAS, which owns Icy Veins
- The acquisition was paid for with €7,000,000 in cash and stock, plus an earn-out
- Enthusiast Gaming made a cash payment of €3,500,000 and issued 226,563 common shares for an aggregate value of €5,000,000
- At the option of the company, €750,000 of the €2,000,000 balance, payable on the first anniversary of the closing date, may be settled by issuing additional shares
- Icy Veins, founded in 2011, is one the largest independent Activision Blizzard fan communities, generating over 3 billion lifetime views of content
- Enthusiast Gaming Holdings Inc. (EGLX) opened trading at C$9.92 per share
Enthusiast Gaming Holdings Inc. (EGLX) has closed the previously announced acquisition of Vedatis SAS, which owns Icy Veins.
The acquisition was paid for with €7,000,000 in cash and stock, plus an earn-out.
Upon closing, Enthusiast Gaming made a cash payment of €3,500,000 and issued 226,563 common shares for an aggregate value of €5,000,000.
At the option of the company, €750,000 of the €2,000,000 balance of the purchase price, which is payable on the first anniversary of the closing date, may be settled by way of issuing additional common shares. The shares are subject to a contractual lock-up with 33.33 percent released at six, twelve and eighteen months following the closing date.
In addition, the vendors are eligible for an earn-out payment, subject to certain conditions, equal to the sum of EBITDA of Vedatis for the four best consecutive calendar quarters following the closing date.
The acquisition is expected to be accretive to Enthusiast Gaming’s revenue and margins and demonstrates an opportunity for increased monetization through the company’s proprietary flywheel, which includes YouTube channels, subscriptions, content licensing, and eCommerce.
Icy Veins, founded in 2011, is one the largest independent Activision Blizzard fan communities, generating over 3 billion lifetime views of content. The platform provides news and strategy guides for leading franchises like World of Warcraft, Diablo, Heroes of the Storm, Hearthstone and Overwatch.
Enthusiast Gaming is building the largest media platform for video game and esports fans to connect and engage worldwide.
Enthusiast Gaming Holdings Inc. (EGLX) opened trading at C$9.92 per share.