Benzinga | Jan 19, 2021 09:13AM EST

Allied Esports Entertainment Announces Sale Of World Poker Tour To Element Partners, LLC For Total Of $78.25M; Consideration Includes $68.25M Upfront Payment And Additional $10M Revenue Share Earn-Out

Consideration includes $68.3 million in cash plus an additional $10 million revenue share earn-out

Allied Esports Entertainment, Inc. (NASDAQ:AESE) (the "Company"), a global esports entertainment company, and Element Partners, LLC ("Element"), a privately-held investment vehicle, today announced a definitive agreement under which Element will acquire the Company's poker-related business and assets, including the entities comprising the World Poker Tour(r) ("World Poker Tour," or "WPT(r)").

Under the terms of the agreement, Element will acquire World Poker Tour for a total of $78,250,000, consisting of a $68,250,000 upfront payment and a fully guaranteed revenue share of 5% of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms, up to a maximum of $10 million, payable over three years after closing. The Company's Board of Directors has approved the transaction, which is expected to close in late January or early February 2021, assuming the Company's shareholders approve the transaction and following required regulatory approvals and other customary closing conditions.