Australia-based payment processing and investment company SQID Technologies Limited (CSE: SQID) announced Thursday that it will divest its esports division, ICON Esports Pty Ltd, to Queensland-based esports organization BLSS Holdings Pty Ltd. ICON Esports is home of Australian esports and gaming entertainment brand, The Chiefs Esports Club.
Under the terms of the deal, SQID has entered into an “arm’s length” share sale agreement with BLSS where the company will acquire 100% of ICON Esports share capital. In turn, SQID will be entitled to a share of EBITDA generated by ICON for three calendar years following completion date of the transaction. That EBITDA share will be 10% in the first two calendar years, followed by 8% in the third.
As part of this deal, Australian esports industry veteran Chris Smith will join BLSS as an advisor on a 24-month contract to help ensure a smooth transition. In addition, ICON CEO Nick Bobir has stepped down from his role, but the remainder of the ICON management team will report directly to the BLSS leadership team once the transaction is completed.
The divestment may be subject to regulatory approvals in both Canada and Australia, as SQID is traded on a Canadian exchange.
