Canadian esports company Enthusiast Gaming announced that it has closed its acquisition of Vedatis, which owns Icy Veins — a platform dedicated to guides for Activision Blizzard games including Hearthstone, World of Warcraft, and Overwatch — for €7M EUR ($8.51M USD). Icy Veins founders Damien Thivolle and Vlad-Matei Mladin will remain with the company long-term to operate the website.
The acquisition sum comprises a cash and stock consideration and earn-out subject to certain conditions. Upon closing of the transaction, Enthusiast Gaming made a payment of €3.5M ($4.25M) and issued approximately 227K of its common shares to the sellers for an aggregate value of €5M ($6.08M). At the option of Enthusiast Gaming, another €750K ($912K) of the purchase price are payable on the first anniversary of the closing date. In its release, the company did not disclose when the remaining €1.25M balance of the acquisition price will be paid. In addition to the €7M ($8.51M) purchase price, the sellers are entitled to an earn-out equal to the sum of EBITDA of Vedatis for the four best consecutive calendar quarterly periods within the sixteen consecutive calendar quarterly periods immediately following the closing date.
According to a release, Enthusiast Gaming expects the acquisition “to be accretive to Enthusiast Gaming’s revenue and margins and demonstrates opportunity for increased monetization through the company’s proprietary flywheel, which includes YouTube channels, subscriptions, content licensing, and e-commerce.”
