Sports betting and entertainment company Esports Entertainment Group announced that it has completed the acquisition of UK tournament organizer Esports Gaming League (EGL) parent Phoenix Games Network. Under the terms of the acquisition, Esports Entertainment Group purchased all of the issued and outstanding share capital of Phoenix Games Network for a total consideration of £ 4 million ($ 5.5 million).
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 UK company XSeries, 100% owned by Phoenix Games Network. EGL will join Esports Entertainment’s portfolio of entertainment and esports infrastructure assets, including card game-focused esports organization Team Genji, esports center operator Helix eSports and management and advice of esports centers ggCircuit.
Esports Entertainment Group pays for the acquisition in installments. The company made an upfront payment of £ 1.75m ($ 2.42m) comprising cash consideration of £ 350,000 ($ 494,000) and 292,211 common shares with a total value of £ 1.4m ($ 1.93M). Phoenix Games Network vendors will be eligible to receive the balance of the original purchase price of the deal if the company meets certain revenue targets by May 16, 2021.
In addition, Phoenix Games Network sellers are entitled to receive an additional £ 2m ($ 2.74m) if Phoenix Games meets or exceeds 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.