Australia-based payment processing and investment company SQID Technologies Limited (CSE:SQID) has completed its “arm’s length” share sale agreement with Australian esports organization BLSS Holdings Pty Ltd., with BLSS acquiring 100% of ICON Esports Pty Ltd., owner of Australian esports and gaming entertainment brand, The Chiefs Esports Club. The purchase price of ICON Esports set by this transaction was $1M AUD ($650K USD) plus a tiered revenue share over the next three years.
As noted in TEA’s previous reporting on the deal, SQID will be entitled to a share of EBITDA generated by ICON for three calendar years; 10% in the first and second calendar years, and 8% in the third calendar year. SQID said that this divestment will unencumber its balance sheet and return its ability to pursue new strategic initiatives. The company also expects to post a profit on the divestment.
Also 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,” ICON CEO Nick Bobir has stepped down from his role at the company, and the remainder of the management team and staff will report directly to the BLSS leadership team now that the transaction is completed.