Esports Entertainment Group Finalizes Binding Agreement to Acquire Helix eSports and ggCircuit
January 25 2021 - 8:30AM
Esports Entertainment Group, Inc. (NasdaqCM: GMBL, GMBLW) (or the
“Company”), an esports entertainment and online gambling operator,
today announced it has finalized the binding agreement for its
previously announced Helix eSports and ggCircuit acquisition. Under
the terms of the agreement, the $43 mil transaction will be split
50% cash and 50% GMBL shares, priced upon the closing of the
transaction. The transaction is expected to close in 2Q21.
“With the acquisition of Helix and ggCircuit, we
have created the most diversified, US-listed esports entertainment
asset in the entire ecosystem,” stated Grant Johnson, CEO of
Esports Entertainment Group. “These acquisitions significantly
strengthen our Play, Watch, Bet Strategy, adding state-of-the-art
esports entertainment centers, an esports-focused vertical
enterprise software business, a best-in-class esports analytics
platform, and a player-vs-player skill-based wagering platform to
our diversified asset base. Together with what we’ve already built,
Esports Entertainment Group has unparalleled scale and we are on
our way to becoming a global industry leader.”
ggCircuit is a B2B software company that
provides cloud-based management for LAN centers, a tournament
platform, and integrated wallet/point-of-sale solutions for
enterprise customers. ggCircuit has over 1,000 connected locations
and has worked with enterprises such as GameStop, Dell, Best Buy
and Lenovo as well as universities such as Ohio State, Syracuse and
North Carolina. Their ggLeap product has over 60 million hours of
usage by over two million unique gamers on tens of thousands of
public gaming screens inside centers worldwide.
Helix eSports owns five esports centers,
including two of the five largest centers in the US, where they
deliver world-class customer service, esports programming and
gaming infrastructure. Helix offers a variety of experiences
including casual play, competitive tournaments, STEM programming,
high school leagues, large groups and esports bootcamps all with
the goal of leveling the playing field in esports and providing
equitable access to technology. Their centers have become the
destination for social and competitive gamers alike with monthly
tournaments and unique experiences.
Helix also owns Genji Analytics (“Genji”), an
esports-proven, publisher-trusted analytics provider. Using
sophisticated computer vision, natural language processing, and
machine learning tools, Genji delivers cutting-edge broadcast
optimization and talent scouting analytics. Genji works with
leading esports publishers and sports leagues, such as FIFA and the
NBA 2K League, to power activities like combines, drafts and
data-driven business decisions. Genji has also launched products
into Helix eSports Centers that create customized tournament
experiences, leveraging both idle computing capacity and unique
proprietary data sources. Revenue streams include platform sales to
publishers and leagues with plans to expand to all competitive
players looking to enhance their gameplay through analysis, fair
competition, and roster optimization.
The acquisition also includes LANduel, Helix’s
proprietary player-vs-player wagering platform, built in Unity,
that allows for skill-based wagering on third-party video games.
LANduel’s consumer facing application enforces strict four-factor
authentication to ensure fair play and ID verification. LANduel
also holds close relationships with several major game publishers
to ensure events and wagering follow community guidelines. LANduel
is currently working alongside the New Jersey Department of Gaming
Enforcement on a pilot program. Once the model is proven at the
Helix eSports locations, LANduel can easily be scaled to other
centers throughout the US across the ggCircuit network, and
eventually into the homes of gamers through ggCircuit’s proprietary
at home product suite.
About Esports Entertainment
GroupEsports Entertainment Group, Inc. is an esports and
online gambling company. The Company operates a number of entities
across three key pillars: 1) esports entertainment and
infrastructure, 2) esports wagering, 3) iGaming. The Company
maintains offices in New Jersey, the UK and Malta. For more
information visit www.esportsentertainmentgroup.com.
FORWARD-LOOKING STATEMENTS
The information contained herein includes
forward-looking statements. These statements relate to future
events or to our future financial performance, and involve known
and unknown risks, uncertainties and other factors that may cause
our actual results, levels of activity, performance, or
achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or
implied by these forward-looking statements. You should not place
undue reliance on forward-looking statements since they involve
known and unknown risks, uncertainties and other factors which are,
in some cases, beyond our control and which could, and likely will,
materially affect actual results, levels of activity, performance
or achievements. Any forward-looking statement reflects our current
views with respect to future events and is subject to these and
other risks, uncertainties and assumptions relating to our
operations, results of operations, growth strategy and liquidity.
We assume no obligation to publicly update or revise these
forward-looking statements for any reason, or to update the reasons
actual results could differ materially from those anticipated in
these forward-looking statements, even if new information becomes
available in the future. The safe harbor for forward-looking
statements contained in the Securities Litigation Reform Act of
1995 protects companies from liability for their forward-looking
statements if they comply with the requirements of the Act.
Contact:
U.S. Investor Relations RedChip Companies,
Inc.Dave Gentry407-491-4498dave@redchip.com
Media & Investor Relations
InquiriesJeff@esportsentertainmentgroup.com
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