Esports entertainment and events company TGS Esports has signed a letter of intent to acquire fighting game tournament organiser Even Matchup Gaming (EMG) for CAD$1.1m (~£635,600).
EMG owns and operates Canadian fighting game event Get On My Level (GOML) and New York-based Super Smash Bros tournament Let’s Make Moves.
TGS will acquire all of EMG’s issued and outstanding shares if the acquisition is successful. The purchase will be paid via the issuance of up to 5,500,000 TGS common shares to EMG at a deemed price per share of CAD$0.20. The consideration shares will be subject to a contractual lock-up, periods ranging between 24 and 36 months.
According to a release, the acquisition will allow EMG to leverage TGS’ team and technology to scale the business into new cities and countries, whilst also reducing the cost of running events. EMG says that over 30 per cent of event costs originate from outsourced staff and production.
In 2019, prior to the global pandemic, GOML had over 1,700 competitors compete in their events, and attracted 1.7 million total live views. Last year, as events moved online, the number of competitors increased to an estimated 3,000.
EMG says it achieved $300,000 in revenue in 2019 and expects to grow significantly by leveraging TGS’ team and infrastructure.
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Joseph Cribari, CEO of Even Matchup Gaming commented: “We have seen incredible growth over the last few years, and joining the TGS family will enable us to leverage the TGS team and infrastructure to offer more exciting events at a lower cost. With the backing of TGS, we are looking forward to expanding into new markets, developing key partnerships, and continuing to grow our player base.”
Cribari will also enter into an employment agreement with TGS, official title TBD, for a minimum of two years from the date of closing of the acquisition.
Spiro Khouri, CEO of TGS, added: “EMG is a property that is synonymous with esports. I have been a big fan for a long time and am excited to work with Joe and his team to help EMG get to the next level. TGS works with many brands that are always looking for additional value in this space. We can now open up EMG events to our partners which creates more value while also driving expanded revenue opportunities to TGS.”
Esports Insider says: There is safety in numbers, and TGS is in a strong position to help and expand Canada’s fighting game esports scene. This is just one of many acquisitions and big changes coming from TGS in recent months, which creates massive opportunities for fighting game esports worldwide.