SQID Completes Divestment of The Chiefs Esports Club Parent ICON Esports

Key insights

6 takeaways

01
SQID Technologies Limited has completed the sale of its 100% stake in ICON Esports, the parent company of The Chiefs Esports Club, to BLSS Holdings Pty Ltd.
02
The transaction is valued at $1 million AUD ($650,000 USD) plus a tiered revenue share based on ICON's EBITDA over the next three years.
03
SQID will receive a 10% share of ICON's EBITDA for the first and second years, followed by an 8% share in the third year.
04
SQID expects to record a profit on the divestment, which it states will unencumber its balance sheet and allow for new strategic initiatives.
05
Following the acquisition, ICON CEO Nick Bobir has stepped down from his position.
06
Industry veteran Chris Smith has been appointed as an advisor to BLSS on a 24-month contract to manage the transition of the organization.

Summary

SQID Technologies Limited has finalized the divestment of its subsidiary, ICON Esports Pty Ltd, the parent company of the Australian gaming and esports brand The Chiefs Esports Club. The transaction, structured as an arm’s length share sale agreement, resulted in BLSS Holdings Pty Ltd acquiring 100% ownership of ICON Esports. This move serves to unencumber the balance sheet of the Australia-based payment processing and investment firm, allowing the company to redirect its focus toward new strategic initiatives while anticipating a profit from the sale.

The financial terms of the acquisition include a base purchase price of $1 million AUD (approximately $650,000 USD). Additionally, the agreement incorporates a tiered revenue-sharing structure based on the EBITDA generated by ICON Esports over the next three calendar years. Specifically, SQID is entitled to a 10% share of EBITDA in the first and second years, followed by an 8% share in the third year.

The transition involves significant leadership changes within the organization. ICON Esports CEO Nick Bobir has stepped down from his position, and the remaining management team and staff have transitioned to report directly to the leadership at BLSS. To ensure operational continuity during this shift, industry veteran Chris Smith has been appointed as an advisor to BLSS under a 24-month contract. This divestment marks a notable shift in the Australian esports landscape, reflecting broader trends of consolidation and strategic restructuring within the industry.