Enthusiast Gaming Holdings has entered into a binding term sheet to acquire Vedatis SAS, which owns Icy Veins. Icy Veins is an independent Activision Blizzard fan community that has generated more than 3 billion content views in lifetime.
Enthusiast Gaming (ENGMF) will pay $8.3 million in cash and stock and certain milestone payments in consideration of this acquisition. The transaction is expected to close in 2Q, subject to customary conditions.
Notably, Enthusiast Gaming, one of the largest gaming platforms in North America, reaches more than 300 million monthly video game and e-sports fans across the globe.
Icy Veins provides news and strategy for gaming franchises like World of Warcraft, Diablo, Heroes of the Storm and Overwatch. Post acquisition, its founders, Damien Thivolle and Vlad-Matei Mladin, will continue to operate the platform.
In the past, Enthusiast Gaming has worked with Icy Veins to monetize its advertising traffic. After the acquisition, Enthusiast Gaming will be retaining 100% of the advertising revenue and will be able to start monetizing Icy Veins community through You Tube channels, subscriptions, content licensing and e-commerce.
Enthusiast Gaming’s CEO, Adrian Montgomery, said, “I would like to welcome the Icy Veins team to the Enthusiast gaming family and look forward to unlocking the many identified growth opportunities which will drive revenue and margin growth. We continue to evaluate additional opportunities from within our platform and existing relationships, to aggressively grow our ownership of valuable video game fan communities and audiences.” (See Enthusiast Gaming stock analysis on TipRanks)
On March 4, B. Riley Financial analyst Mike Crawford reiterated a Buy rating on the stock and increased the price target to C$10 (21.3% upside potential) from C$7.
Turning to the rest of the Street, the stock has a Strong Buy consensus rating alongside an average analyst price target of $6.76 (2.1% upside potential) based on 3 unanimous Buys. Shares have rallied about 541.6% over the past year.
Related News:
Jabil’s Sales Guidance Tops Estimates After 2Q Beat; Shares Jump Pre-Market
Southwest Airlines Provides Operational And Financial Business Update; Shares Gain
Johnson & Johnson’s Single-Dose COVID-19 Vaccine Granted Emergency Use Listing By WHO
