TGS Esports has entered a letter of intent to acquire Pepper Esports, a platform for managing gaming communities and running esports events.
TGS Esports is the parent company of Myesports and the operator of The Gaming Stadium in Canada.
As part of the acquisition, Pepper Esports’ executive team will also make the transition over to TGS Esports becoming executives at the company. Pepper will also be able to appoint a nominee to TGS’ Board of Director. TGS will acquire all of the outstanding securities for Pepper Esports by way of a three-cornered amalgamation.
Spiro Khouri, CEO of TGS Esports, said in the release: “Rather than sending our players to third party platforms for online events, and missing out on key revenue, we will now be able to keep players within our ecosystem while also generating revenue directly from the Pepper platform. This acquisition brings an important technology platform to TGS, making our business model scalable, global, and with defensible IP.”
The deal was for just over $6 million (£4.5 million) and the agreement must be finalised by October 30th, 2020.
Guy Halford-Thompson, CEO of Pepper Esports, said: “This acquisition will fast track our ability to scale the Pepper platform by leveraging the existing customers and expertise of the TGS team, and we hope to bring accelerated revenue growth to TGS once the Pepper platform is fully launched. Becoming part of TGS is a big milestone for the company.”
Esports Insider says: TGS Esports has only just gone public. The company became available on August 7th and has slid from its opening price of $0.20 to $0.11 after converting the Canadian dollar to the US dollar. This acquisition may have an impact on the stock but it’s tough to be an esports company with a key pillar being live events in a time of COVID.