OverActive signs letter of intent to acquire KOI and Movistar Riders

OverActive is preparing to make MAD Lions, KOI, and Movistar Riders into one group.

The company signed a letter of intent to acquire Goatch Global, S.L. (KOI) and Team Randomk Esports S.L. (Movistar Riders). The purchase is still pending approval from the OverActive board and "the execution of the Definitive Agreements," according to the announcement.

With this move, Movistar Riders co-founder Gabriel Saenz de Buruaga and KOI co-founder Gerard Piqué are expected to join OverActive's board of directors.

Adam Adamou, the CEO of OverActive, celebrated the news. "Adding KOI and Movistar Riders to OverActive will solidify our position in Spain, EMEA and Latin America," he said.

This is not the first purchase by the company. MAD Lions, a Spanish organization, was acquired by Splyce's holding company in 2019. The company is preparing to merge MAD Lions with KOI, with the latter founded by Piqué and streamer Ibai Llanos.

Furthermore, Movistar Riders is featured in the announcement. The Movistar Riders made history as the first Spanish organization to qualify for a Counter-Strike Major. The organization is a part of Spanish mobile phone operator Movistar.

KOI has a place in the VALORANT Champions Tour's (VCT) Europe, the Middle East, and Africa (EMEA) region, while MAD Lions has a place in the League of Legends EMEA Championship (LEC). OverActive announced its plans to combine the names of organizations across different games, pending approval from Riot.

Despite the designations, a union of the three companies is expected. "A global rebranding effort, to include input from fans and influencers, will be undertaken in 2024 to unite all teams globally under a single brand by the end of the year," OverActive announced.

At the end of last year, KOI broke the connection it had with Infinite Reality, which owns Rogue.

"The Acquisitions mark a significant milestone for the Company, which is expected to be accretive to adjusted EBITDA going forward and add $10 to $12 million in revenues in 2024," OverActive also stated.

The aggregate consideration expected to be paid by OverActive to complete both acquisitions is "up to 60 million common shares, consisting of 45 million Initial Consideration Shares and up to 15 million Earn Out Shares."

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