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Be the first with the news that moves the market- YDX Innovation (TSXV:YDX) has signed a letter of intent to acquire Toronto-based BEAT Gaming
- The company expects that the acquisition will bolster YDX Innovation’s growing esports division
- YDX Innovation will issue a total of C$600,000 in cash, and 3 million common shares, to BEAT Gaming for the acquisition
- Since 2011, BEAT Gaming has organised more than 30 professional and semi-professional esports events, garnering 40 million views globally
- YDX Innovation (YDX) is currently up 9.09 per cent to 6 cents per share
Technology company YDX Innovation (TSXV:YDX) has signed a non-binding letter of intent to acquire Toronto-based BEAT Gaming.
YDX currently develops a range of immersive technologies, such as augmented and virtual reality. The company intends for the acquisition to bolster its growing esports division.
Founded in 2011, BEAT Gaming has held over 30 professional and semi-professional events thus far, garnering 40 million views globally.
Major media outlets, such as ESPN, TSN, and Score esports have covered the company’s events. In addition to its events management arm, BEAT Gaming also provides consulting, management, and tournament organisation services to a host of clients.
YDX CEO, Daniel Japiassu, said that the company is optimistic about its growing presence in the increasingly popular esports industry.
“Going forward, the company intends to focus on a prudent combination of organic growth and strategic acquisitions that increase the number of technology-based verticals with an emphasis on revenue growth, gross margins, and EBITDA.
“We anticipate that BEAT’s expertise and experience will positively contribute to our existing team. Esports and virtual reality are a great combination and we believe this operation will allow us to introduce new products to the market,” he added.
The terms of the agreement will allow for an exclusivity period of 90 days. During this time, the parties have agreed to formulate and sign a definitive deal within 60 days.
As consideration for the acquisition, YDX Innovation will issue C$600,000 in cash and 3 million common shares to BEAT Gaming.
The cash consideration will be payable in tranches, with $150,000 to be paid upon closing of the deal. A further $150,000 will be paid within 60 days of that date, with the remaining $300,000 payable in instalments of $75,000 every three months.
YDX Innovation (YDX) is currently up 9.09 per cent to 6 cents per share at 1:10pm EST.
