Canadian online marketing specialist Intema Solutions has signed a binding letter of intent to acquire esports platform HypeX.gg.
The HypeX platform has 50,000 registered users, and powers tournaments, as well as allowing for API-based stat aggregation, and can integrate with social channels and push advertising to end users.
Intema will make a cash payment of $75,000 and issue 1,625,000 common shares to HypeX investors, per the acquisition agreement.
In addition, it will grant 2,500,000 stock options to the business’ employees and management, subject to a four year vesting period.
HypeX president Evan Ryer and its chief technology officer David Levy will also sign three-year employment contracts with Intema as part of the agreement.
“We believe that esports and igaming, which have been fast-growing markets in the last few years, could be major vectors of growth, and the acquisition of HypeX is a first step into this diversification of verticals for Intema,” Intema president and chief executive Laurent Benezra explained.
“Our strategy is to acquire complementary businesses with strong management teams that will be able to operate autonomously,” Benezra said. “We will provide them with financial and high-level management support to ensure that we achieve our overall growth objectives.
“This new vertical would also provide cross-selling opportunities for Intema through our existing digital marketing activities.”
HypeX president Ryer added that the business would remained focused on growing its user base, and building value for all stakeholders.
“We are in a great position to capture new users and expand our portfolio through our proprietary online platform, and look forward to the continued success in 2021,” he said. “The future is now.”
It had previously looked set to be acquired by Alpha Esports Tech, an esports business in the process of listing on the Canadian Securities Exchange.
That deal, announced in December 2020, was not mentioned in the Intema release, nor has there been any announcement of the acquisition being cancelled.
The Intema deal remains subject to due diligence, the signing of a definitive agreement, and approval by regulatory authorities.