The Chiefs Esports Club Owner ICON Esports Sells a 50% Stake at a 3.32 M Assessment
Australian video gaming and esports company ICON Esports, the parent of Australian esports company The Chiefs Esports Club, announced that it has actually secured a $2.15 M AUD ($1.66 M USD) funding round from Australian payment processor SQID Technologies to broaden its sales and business advancement activity and to support growth. The transaction valued ICON Esports at $4.3 M ($3.32 M).
Canadian Securities Exchange-listed SQID Technologies acquired a 50% equity interest in ICON Esports through the funding round. As A Result, ICON Esports’ board of directors was reconstituted to make up 2 candidates of SQID, being its CEO Athan Lekkas and among its non-executive directors Michael Clarke, and 2 candidates of ICON, being its CEO Nick Bobir and existing board member and investor Nathan Taylor.
ICON Esports formed in early 2019 when a group of investors obtained Australian esports company Tainted Minds and rebranded it to ICON Esports. Financiers consisted of Nathan Taylor, a managing director for capital markets at Commonwealth Bank; Raymond Burke, a board member of Highlanders Super Rugby; Edward Abbot, CEO of QMS Sport; Mathew Davey, creator and CEO of Ticketdirect; and Adrian Whittingham, an executive director at Peak Financial investment Management.
The company at first fielded teams in Counter-Strike: Global Offensive, Rocket League, Fortnite, and PlayerUnkown’s Battlegrounds however disbanded all of its groups by June 2019 as it obtained the more prominent Australian esports organization The Chiefs Esports Club.
At the end of November 2020, SQID Technologies revealed that it could not continue to service a big group of its consumers, representing 94% of its overall operations, due to the inability to comply with payment card data security requirements. Following that incident, the company began examining its group structure and acquisition opportunities to match its payments software application and copyright. SQID also revealed that it had $3M ($2.32 M) in money possessions to finance an acquisition.
In the ICON Esports investment statement, SQID CEO Lekkas mentioned that “with the implementation of SQID’s resources including our payment technology and mobile platforms, we look forward to continuing to exponentially grow both companies together with shared goals and vision for the future.” ICON Esports will concentrate on more establishing income motorists outside of the core esports organization, including opportunities in the form of strategic mergers and acquisitions and the launch of its new e-commerce organization.