Culver City-based Omnia Media Inc. has been acquired by Canadian digital media company Enthusiast Gaming Holdings Inc., the companies announced on Aug.t 6.
Omnia parent company Blue Ant Media Solutions Inc., a Toronto-based gaming video content company, entered into a binding share purchase agreement with Enthusiast Gaming.
The purchase price, which is subject to adjustments, consists of $8.3 million in cash, 18.25 million common shares of Enthusiast Gaming and a vendor take-back note with a face value of $4.3 million, where Enthusiast Gaming borrowed the funds from Blue Ant to help finance the acquisition.
The transaction is expected to close during the third quarter.
“Joining Enthusiast allows us to use our production and distribution strength to bring Luminosity Gaming and the company’s other great esports and gaming brands to new platforms. There are also opportunities to extend our owned and operated brands, BCC, Arcade Cloud and Wisecrack, onto Enthusiast’s existing strong web distribution platform,” Greg Kampanis, senior vice president of content and operations at Omnia Media, said in a statement.
Omnia manages a multichannel YouTube network that distributes video game related content. The company produces and programs more than 30 weekly shows and represents more than 500 gaming influencers across YouTube and Twitch.
Omnia generated revenue of $46.5 million and $59.9 million for the fiscal years ending Aug. 31, 2018 and Aug. 31, 2019, respectively, according to Enthusiast Gaming.
“Omnia is a transformational acquisition for Enthusiast Gaming and adds immediate strategic and financial value to our platform,” Adrian Montgomery, chief executive of Enthusiast Gaming, said in a statement.
Montgomery said the addition of Omnia positions Enthusiast Gaming as the largest gaming media platform in North America.
“The combination is on strategy and has many expected synergies with our existing audience and advertising and distribution partners. We look forward to welcoming and working much closer with the Omnia team in L.A. to continue delivering on our strategic growth drivers,” Montgomery said.
