Simplicity Esports and Gaming Company has entered a letter of intent that would see Redragon obtain equity in its Brazilian subsidiary.
The deal would see Redragon acquire 7.5 percent equity stake in Simplicity One Brasil, the company behind Flamengo Esports, for $390,000 (£290,746.95) in cash and over $133,000 (£99,152.16) in additional consideration.
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The transaction would see the formation of a training centre sponsored by Redragon, which sponsored Flamengo Esports in March, analytics, and a tournament platform that the peripherals company would manage.
Fred Tannure, Director of Flamengo Esports, commented on the development in a release: “We are thrilled to announce the equity investment and long-term partnership opportunity with our amazing sponsor, Redragon. Red Dragon has been the exclusive provider of peripherals for Flamengo Esports this season, and their desire to become an equity owner in the Brazilian subsidiary of Simplicity Esports provides validation to the long-term value creation of this division.”
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2020 has been a productive year for Simplicity Esports so far, acquiring new franchise territories and facilities, receiving investment from student-run fund manager Triton Funds, and filing for a proposed public offering on the NYSE American.
Jed Kaplan, CEO of Simplicity Esports and Gaming Company, added: “Redragon agrees that we have an incredible opportunity to grow our Flamengo Esports brand into a top esports organization in Latin America. It’s great to have a partner that is willing to provide additional contributions in the form of infrastructure with a sponsored training center to support our League of Legends team, and promotion and marketing opportunities to keep Flamengo Esports a truly sustainable brand in esports for decades to come.”
Esports Insider says: Redragon must be happy with its involvement with Flamengo Esports which was established earlier this year! Simplicity has made plenty of moves with the Brazilian brand in recent months and clearly has further plans to see it grow – outside of applying to be a long-term partner in Riot Games’ CBLoL.