Nasdaq-listed esports entertainment company Allied Esports Entertainment announced that it has reached a definitive agreement with privately-held investment vehicle Element Partners to acquire Allied Esports’ poker-related business and assets, including the World Poker Tour (WPT). Element Partners will pay a total of up to $78.25M USD for WPT. If Allied Esports’ shareholders and regulatory bodies approve the transaction, which already has been approved by Allied Esports’ board of directors, it is expected to close in late January or early February 2021.
According to the acquisition agreement’s conditions, Element Partners will pay Allied Esports $68.25M upfront. Further, Allied Esports will receive a fully guaranteed revenue share of 5% of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms during a three-year period after the transaction’s closing, up to a maximum of $10M.
Furthermore, Allied Esports announced that its board of directors has agreed to explore “strategic options for the esports business, including a possible sale.” Allied Esports engaged investment bank Lake Street Capital Markets to assist with that process while revealing that no potential or particular buyer has been identified and there are no initial or ongoing negotiations in respect of the esport business’ sale at this time.
In case Allied Esports would sell WPT and its esports business, it would change its name and “use its cash resources to explore opportunities in online entertainment, including but not limited to, real-money gaming and other gaming sectors.”
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