Esports Entertainment Group accelerates M&A strategy with Esports Gaming League purchase
Nasdaq-listed operator adds new business to acquisition portfolio alongside Argyll Entertainment and FLIP Sports
Esports Entertainment Group (EEG) has no intentions to curb its aggressive M&A strategy after signing a letter of intent to acquire B2B esports events provider Esports Gaming League (EGL).
EGL acts as a central hub whereby esports fans can both compete against each other and watch esports tournaments via the company’s proprietary technology.
The platform, which was founded in 2010, boasts more than 350,000 registered users and generated approximately $1.3m in revenue last year.
Grant Johnson, EEG CEO, said: “At our IPO we committed to having a tournament platform up and operational before the end of the calendar year, and with this transaction we have delivered on that commitment.
“EGL generated approximately $1.3m in revenue last year and is positioned for triple-digit growth moving forward.
“Their complementary platform, large user base, excellent team and marquee advertising partner relationships are key drivers behind this transaction. Together, I believe we can accelerate growth both in the US and internationally,” he added.
Glen Elliott, EGL CEO, described his firm as a “perfect fit” for the publicly listed firm.
He said: “We are extremely excited to be joining the Esports Entertainment Group family as it will give us an opportunity to push our technology and resources to further grow our client roster.
“The vision Grant has around building an esports ecosystem is visionary for the industry and EGL is a perfect fit,” he added.
The acquisition of EGL follows that of FLIP Sports earlier this month, as well as a headline deal with Argyll Entertainment, which closed in July.
Speaking to EGR, EEG chief legal counsel Stuart Tilly said the existing relationship between FLIP and Argyll facilitated the dual purchase.
Tilly said: “A key part of EEG’s strategy is to build out and expand its own tech resource across all gaming verticals and the FLIP team, together with its existing software, will be a huge accelerator in this.”