Esports igaming group Intema Solutions has signed a definitive share purchase agreement to acquire Livestream, owner of the Loot.Bet server-based real-money gaming platform and esports betting brand.
The deal could be worth as much as $14.8m, with this to be settled as $8.0m in cash, $4.0m by the issuance of a secured vendor take back note and the issuance of 6,470,588 common shares of Intema.
A further $3.0m in cash would also be paid if Livestream were to achieve a number of set milestones.
This would include a $1.5m if Livestream generates minimum gross gaming revenue of $7.5m during the 12 months after the acquisition, and a further $1.5m if the business were to post at least $11.3m in gross gaming revenue during the 13- to 24-month period following the closing date.
In line with the acquisition agreement, Intema will make a minimum capital contribution of $6.0m to the operations of Livestream over a period of two years following the closing of the deal.
Intema first announced plans to buy Livestream in May last year, signing a letter of intent to acquire the business.
Subject to final regulatory approval, Intema expects the transaction to close on or about February 7 this year.
“After months of hard work and negotiations, we are thrilled to have signed this definitive agreement to purchase Livestream, which will allow Intema to become a major player in the esports and igaming sectors,” Intema president and chief executive Laurent Benezra said.
“Loot.Bet is unequivocally the best online betting platform in the world and, with the help of Intema’s emerging ecosystem and Isle of Man license, it has the potential to grow significantly more. We look forward to the final closing so we can truly begin our journey.”
The deal comes after Intema in September last year also acquired Team Bloodhounds, the owner of Canadian esports brand Team BH.