- YDX Innovation (TSXV:YDX) has signed a definitive agreement to acquire Toronto-based esports company, BEAT Gaming
- Since its establishment in 2011, BEAT Gaming has organised over 30 professional and semi-professional esports events
- Beat Gaming has events televised on ESPN
- YDX Innovation will pay a total of C$640,000 for the acquisition, consisting of both cash and the issuance of common shares
- YDX Innovation (YDX) finished trading yesterday at $0.21 per share, with a market cap of $2.89 million
YDX Innovation (TSXV:YDX) has signed a definitive agreement to acquire Toronto-based esports company, BEAT Gaming.
Founded in 2011, BEAT Gaming has organised more than 30 professional and semi-professional esports events, reaching over 40 million views globally. Some of the company’s events have received coverage from major media outlets, such as ESPN, and have had successful engagements with Blizzard Entertainment and Twitch.
In addition to holding its own events, BEAT Gaming also provides esports consulting, management and tournament organising services.
Bill Elafros, director and co-founder of BEAT Gaming, said that his team is looking forward to joining the YDX family.
“YDX’s vision for creating vertically integrated immersive experiences resonated greatly with us and we can’t wait for the future,” he added.
The terms of the agreement are consistent with those outlined in the initial letter of intent, dated March 31 this year.
As such, YDX will pay a total of C$640,000 for the acquisition. This will include $400,000 payable 13 months from the date of closing, as well as 4 million common shares in YDX with a value of $240,000.
25 per cent of the shares will be issued upon completion of the transaction, with the remaining 75 per cent subject to a voluntary holding period.
In commenting on the acquisition, Daniel Japiassu, CEO of YDX Innovation, referenced the company’s ambitious plans for the future of BEAT Gaming.
“There are few esports event producers as experienced as BEAT and we are confident that our network can be a key element to expand their business opportunities, both for online and live events likeour Game On Festival.
“We are also looking forward to bringing BEAT’s event management experience to our other areas like exhibitions and experience centers,” he concluded.
In connection with the transaction, YDX Innovation will issue a further 925,000 common shares to a third party as a finders fee, subject to the approval of the TSXV.
YDX Innovation (YDX) finished trading yesterday at $0.21 per share, with a market cap of $2.89 million.
