Esports Entertainment Group has announced that it has finalised its acquisition of the Esports Gaming League (EGL).
Intentions to carry out this deal were first announced in August 2020, and the company’s goal of completing the purchase before the end of January 2021 has also been fulfilled.
The total value of the agreement has not been revealed to the public. However, Esport Entertainment Group expects that the EGL will bring in significant revenue growth.
“A great addition”
EGL is a major events organiser for the eSports industry. Over 350,000 gamers are currently registered with its technology solution. Live broadcasts and unique game launches are also offered as part of its other services — such as online branded tournaments.
Esports Entertainment Group CEO Grant Johnson shared his thoughts on the completion of the acquisition. His comments were as follows.
“EGL is a great addition to our growing operations and further strengthens our ability to execute on our three-pillar strategy.
“EGL technology underpins the esports programs for some of the world’s best-known sports franchises, including the LA Kings, Philadelphia Eagles, and Arsenal Football Club. We plan to build on this strong foundation moving forward, driving near-term revenue growth and long-term shareholder value improvement.”
The opportunity to grow further
EGL generated $1.3 million in revenue over the course of 2019. Esports Entertainment believes that under this acquisition, the company will push towards triple-digit growth.
EGL CEO Glen Elliott also commented on the deal and had the following to say.
“As part of the Esports Entertainment Group family, we now have the opportunity to push our technology and resources to further grow our client roster.
“We have been impressed with Grant’s leadership and vision and are excited to become an integral part of Esports Entertainment Group’s drive to become the industry leader.”
Completing the deal within the scheduled time frame
Esports Entertainment Group has been pushing towards M&A deals for a while, and originally struck a deal with EGL last August. The company also applied to list itself on the NASDAQ Capital Market in June 2019, which has since been accepted.
When the deal was agreed on last summer, Johnson said the following.
“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 this commitment.
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.”
Esports Entertainment Group is the first eSports company of its kind to trade on the NASDAQ market.