? Acquisition
Vancouver-based esports host organisation TGS Esports Inc (TSXV:TGS), also known as The Gaming Stadium, is about to acquire Vancouver-based esports platform provider Pepper Esports for about $6m in stock
The consideration is a subject to a contractual lock-up, with 20% of the shares releasing on the closing and the rest releasing every six month in the same amount of 20% afterwards
TGS Esports is expected to acquire all of the outstanding securities of Pepper by way of a three-cornered amalgamation under the terms of the letter of intent. Each of Pepper’s outstanding securities convertible or exchangeable for Pepper shares will be exchanged for corresponding securities for TGS shares
Pepper executive team of Guy Halford-Thompson, Jackson Warren and Ben Hoffman are expected to join the TGS executive team after the closure of acquisition, however the deal should not result in the change of control inside TGS
Pepper Esports has the right to appoint a nominee to the TGS Esport’s board of directors on the deal closing
TGS Esports Inc (TSXV:TGS) went public on the TSX Venture Exchange less than a month before the acquisition
? Strategic Rationale
For TGS Esports, the acquisition marks:
Revenue diversification — new sources of revenue through data monetization, payment processing and recurring subscription revenue
Expanding marketing channels — global user acquisition through new esports tournaments of any kind
New talents — new qualified team members with a vast background of experience in growing early stage companies
As for Pepper Esports, the acquisition will allow the platform to reach new audience and leverage TGS resources
? Products
Pepper Esports is an esports platform, that allows players to create and manage their own communities and esports events, or participate in the activities of others
One of the platform’s key technologies is an AI engine that captures game data to enrich esports tournament experience, making it possible to:
display global leaderboards
show player profiles and statistics
discover new tournaments
manage digital wallets
SOURCES: NEWSWIRE, ESPORTSINSIDER
