Globe & Mail 08:31 AM EDT, 05/10/2021 (MT Newswires) -- Enthusiast Gaming Holdings Inc. (EGLX.TO, EGLX) was at last look up 2.4% in US premarket trade on Monday, adding to the 2.3% gained on Friday and taking it closer to 52-week highs, after it announced the completion of its cash-and-stock acquisition of Vedatis SAS for 7 million euros (US$8.5 million).
Vedatis owns Icy Veins, an online fan community dedicated to news and guides for franchises under Activision Blizzard such as World of Warcraft, Diablo and Overwatch.
Enthusiast Gaming, which operates several other gaming communities online, paid 3.5 million euros in cash and issued 226,563 common shares as consideration for the transaction, leaving a balance of 2 million euros, of which 750,000 euros is payable after a year.
The transaction also includes a potential earn-out payment equal to the purchased business' total EBITDA for the four best consecutive quarters within the sixteen quarters immediately after completion.
Enthusiast Gaming, which will report its first-quarter earnings after market close Wednesday, said the acquisition is expected to be accretive to its revenue and margins.
Price: 9.92, Change: +0.22, Percent Change: +2.27