NextPlay Technologies has agreed to sell its travel business, NextTrip Group, and its 51% ownership of Reinhart Digital TV to TGS Esports.
NextPlay, a travel, gaming and fintech company, says it will receive $12.2 million in nonvoting convertible preferred shares of TGS. The sale is expected to happen this year.
Florida-based NextPlay was founded in 2015. Vancouver-based TGS was founded in 2018 and partners with Fortune 500 brands, schools and tournament organizers on esports broadcasts and events.
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NextPlay says the transaction will improve capital allocation and unlock shareholder value. NextPlay will set a shareholder record date for a special dividend to distribute all of the common shares of TGS held by NextPlay to NextPlay’s shareholders.
NextPlay CEO Nithinan “Jess” Boonyawattanapisut says, “By streamlining our operations and intensifying our focus on our core businesses, we expect to accelerate NextPlay’s business adoption and cash flow generation.” Boonyawattanapisut will remain in her role.
The companies say the closing of the transaction depends on regulatory approvals and approval of TGS’ shareholders.