Tidal Gaming has sold its subsidiary Tidal Gaming NZ (known as Sportsflare) to Entain as part of a share sale and purchase agreement.
The deal, valued at $13.25m, is subject to standard transaction adjustments and will see Tidal access up to 20% of the funds to pay reasonable transaction costs, with the funds held in a holding account for 180 days after the deal closes.
Should Tidal cancel some aspects of the agreement, a $500,000 'termination fee', could be activated - which would see Tidal have to pay the sum to Entain.
Commenting on the sale, Thomas Hearne, CEO of Tidal, said: "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".
Tidal will use the funds for ongoing working capital for Sportsflare, while the move marks another chapter in Entain's recent acquisitions, which saw it recently complete a deal to buy BetCity in the Dutch market.
The deal is worth up to €450m, with €300m being paid up front. Meanwhile, another payment will be paid by 2024.
Furthermore, MGM was recently understood to be considering a fresh bid for Entain following its failed $8.1bn bid in 2021.
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