The deal aims to consolidate the entertainment and esports business of ReKTGlobal into Infinite Reality's offering of creative tools
ReKTGlobal to be acquired by metaverse innovation firm Infinite Realty. (Credit: Tumisu/Pixabay)
Infinite Realty (iR), a US-based metaverse innovation and entertainment company, has agreed to acquire ReKTGlobal, an esports and entertainment conglomerate, in an all-stock deal worth $470m.
The post-close valuation of the combined entities is $2.47bn.
Infinite Realty was formed through the merger of Display Social, a social ecommerce platform, and Thunder Studios, an entertainment production company.
It offers the tools and services required by companies and creators to build compelling open metaverse experiences.
Infinite Realty’s metaverse empowerment group is engaged in advising, managing, designing, and monitoring the custom features by utilising its expert internal and creator community resources.
Based in the US, ReKTGlobal was founded in 2017 by Dave Bialek and Amish Shah. The company helps endemic and non-endemic brands to activate within the gaming and esports industries to connect with gamers.
It offers brands with services such as content creation, marketing, influencer activation, paid media, fan relationship building and monetisation, among others.
ReKTGlobal chairman Amish Shah said: “Our journey does not end today. We are beginning the next chapter in our evolution into the Metaverse.
“The explosive combination of our shared collective assets together creates a dominant, unstoppable force in the marketplace.”
The deal’s objective is to consolidate ReKTGlobal’s entertainment and esports business into Infinite Reality’s offering of creative tools covering social, gaming, non-fungible token (NFT) minting, content, virtual and remote production, and metaverse creation.
Infinite Reality CEO John Acunto said: “This acquisition is another step in our journey towards becoming the leading Metaverse Entertainment company in the world.
“The synergies across our combined business units from content creation to Web3 entertainment to APIs and more are awe inspiring. We look forward to working with ReKTGlobal’s senior leadership to integrate our valuable combined assets and accelerate Infinite Reality’s growth.”
The deal is subject to customary conditions such as ReKTGlobal’s shareholder approval, regulatory and other approvals.
In February 2022, Infinite Reality entered into a merger deal with Universal Security Instruments (USI), a US-based publicly listed manufacturer and distributor of safety and security devices. The former also has a standby equity purchase agreement with Yorkville Advisors Global for up to $200m after closing of the merger with USI.