Esports betting and entertainment company Esports Entertainment Group announced that it has completed its acquisition of British tournament organizer Esports Gaming League (EGL) parent Phoenix Games Network. According to the acquisition terms, Esports Entertainment Group bought all of the issued and outstanding share capital of Phoenix Games Network for a total consideration of £4M GBP ($5.5M).
EGL, which was founded by Glen Elliot in 2005, is a B2B-centric provider of live and online events and tournaments. The company is operated by the UK-registered company XSeries, which is wholly-owned by Phoenix Games Network. EGL will join Esports Entertainment’s portfolio of esports entertainment and infrastructure assets, including card-game-focused esports organization Team Genji, esports center operator Helix eSports, and esports center management and consulting company ggCircuit.
Esports Entertainment Group is paying the acquisition in multiple installments. The company made an initial payment of £1.75M ($2.42M) comprising a cash consideration of £350K ($494K) and 292,211 shares of its common stock at an aggregate value of £1.4M ($1.93M). The sellers of Phoenix Games Network will be eligible to receive the remaining balance of the deal’s original purchase price upon the company meeting certain revenue targets by May 16, 2021.
Additionally, Phoenix Games Network’s sellers are entitled to receive an additional £2M ($2.74M) if Phoenix Games has reached or exceeded earnings before interest, taxes, depreciation, and amortization (EBITDA) of £2M ($2.74M) within 18 months of the closing date of its acquisition by Esports Entertainment Group.
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