TGS Esports, an Esports Entertainment and Events Company is set to acquire Fighting Game Tournament Organizer Even Matchup Gaming (EMG) for CAD$ 1.1m.
The Even Matchup Gaming (EMG) owns and operates fighting game event. These events are Get On My Level (GOML) and New York-based Super Smash Bros Tournament Let’s Make Moves.
With this deal, 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.
This acquisition will allow EMG to leverage TGS’ team and technology and scale the business into new cities and countries, while reducing the event running cost. As per EMG more than 30 per cent of event costs is due to outsourced staff and production.
Prior to pandemic, GOML had over 1,700 competitors and attracted 1.7 million total live views. As the events moved online last year, the number of competitors increased to an estimated 3,000.
As per the release, EMG says it achieved $300,000 in revenue in 2019 and expects it to grow significantly by leveraging TGS’ team and infrastructure.
CEO of Even Matchup Gaming, Joseph Cribari 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.
CEO of TGS, Spiro Khouri commented “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.”