Infinite Reality, a US-based metaverse firm, has entered into a merger agreement with esports startup ReKTGlobal in a $470 million all-stock deal, the companies announced Tuesday in a press release.
The merger sum was based upon an equity valuation for Infinite Reality of $2 billion. The combined corporate value of ReKT Global and iR is expected to reach $2.47 billion in post-settlement evaluation.
Infinite Reality is a metaverse entertainment company formed after a merger between social commerce platform Display Social, entertainment company Thunder Studios, and metaverse development company Infinite Metaverse. The company recently announced a SPAC merger with Universal Security Instruments (UUU) in part of its plans to go public.
Part of the deal requires ReKT to merge its entertainment and esports business, including esports teams Team Rogue and London Royal Ravens, with Infinite Reality’s existing creator tools in the field of social, gaming, virtual and remote production, NFT minting, content, and Metaverse creation.
In addition, the metaverse company will also integrate ReKT’s key business divisions, including esports franchises, marketing and partnership services, talent management, and technology products. Infinite Reality CEO John Acunto said in a statement:
“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.”
Per a recent interview with Bloomberg, Acunto revealed the company’s aims to raise $150 million or more through private investment in public equity, or PIPE. Infinite Reality is yet to become profitable as it continues to invest in its metaverse creator tools.
