Other deals this week include crossborder M&A deals in esports, IT sectors
Lithium Americas will receive $867 million (US$650 million) from American automaker GM under a joint venture agreement. Also included in this week’s deals roundup are two M&A deals between Canadian and US companies in the Esports and IT sectors.
Lithium Americas to receive $867 million from General Motors for joint venture
Lithium Americas Corp., a Vancouver-based mining firm, announced an agreement with US-based automaker General Motors Co., in which GM will invest $867 million (US$650 million) for a joint venture to develop Thacker Pass mine, the largest known source of lithium in the United States.
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According to a press release by the companies, lithium carbonate from Thacker Pass will be used in GM's proprietary Ultium battery cells. The deal represents the largest ever investment by an automaker to produce battery raw materials.
"GM has secured all the battery material we need to build more than 1 million EVs annually in North America in 2025 and our future production will increasingly draw from domestic resources like the site in Nevada we're developing with Lithium Americas," said GM Chair and CEO Mary Barra. "Direct sourcing critical EV raw materials and components from suppliers in North America and free-trade-agreement countries helps make our supply chain more secure, helps us manage cell costs, and creates jobs."
"The agreement with GM is a major milestone in moving Thacker Pass toward production, while setting a foundation for the separation of our U.S. and Argentine businesses," said Lithium Americas President and CEO Jonathan Evans. "This relationship underscores our commitment to develop a sustainable domestic lithium supply chain for electric vehicles. We are pleased to have GM as our largest investor, and we look forward to working together to accelerate the energy transition while spurring job creation and economic growth in America."
TGS Esports to sell to Midnight Gaming for $18.8 million
TGS Esports Inc., a British Columbia-based company, signed an agreement for a potential sale to Midnight Gaming Corporation, a US-based esports media and entertainment firm, in a deal valued at $18.8 million (US$ 14.1 million).
“This is an exciting day for all of us at TGS,” said TGS CEO Spiro Khouri. “Ken and the team at Midnight have built an amazing piece of entertainment technology that fits right in with our future goals at TGS. The alignment here is perfect and we cannot wait to dive in and get to work with Midnight.”
“The future for Midnight Gaming Corp is very bright,” said Midnight CEO Kinney McGraw. “With the acquisition of TGS Esports, Midnight Gaming Corp, its investors and employees are very excited for the future. TGS has a proven business model and adds tremendous value to Midnight. Midnight and TGS together will make an impact in the esports and gaming events and media space for many years to come.”
The deal is expected to close by June 30, 2023.
Prodigy Labs sells to UST Global for $12.5 million
Prodigy Labs, the operating name of Ontario-based technology service company TCB Corporation, has agreed to sell to UST Global, a digital transformation solutions firm, in a deal valued at $12.5 million.
UST General Manager for Banking and Payments, Mehmet Pasa, said, “The Canadian financial sector is evolving in a number of exciting ways, and the acquisition of Prodigy Labs will position UST for long term success in a growing market.”
UST Chief Information Officer and Chief Investment Officer Sunil Kanchi said, “With the acquisition of Prodigy Labs, UST is adding additional strength and capability to its practice of delivering end-to-end digital transformation in the financial services industry. This strategic acquisition positions us for success in the Canadian financial services market, a key vertical for UST, enhancing our ability to meet demand in this dynamic sector while also providing near shore support to serve the US market.”
Prodigy Ventures Founder, Chairman and CEO, Tom Beckerman, said, “Prodigy Labs has played an active role in modernizing service delivery, and strengthening Prodigy Labs' relationship with UST will empower its team to keep delivering these critical services to its devoted client base. I am excited that Prodigy Labs will continue its growth as a UST company, building on its financial strength and broad global portfolio of products, services and resources.”