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TGS Esports Acquires Pepper Esports For $6m

M&A | ANNOUNCEMENT DATE: 01 SEP 2020
WRITTEN BY | 04 Sep 2020
TGS Esports Acquires Pepper Esports For $6m
M&A

💵 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

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Myesports Ventures
  • TGS Esports is the parent company of Myesports Ventures

  • Established in 2018

  • Headquarters – Vancouver, Canada

  • Founded by – Dan Cybak

  • Esport events and tournaments host

  • The company’s presentation deck

Pepper Esports
  • Established in 2018

  • Headquarters – Vancouver, Canada

  • Founded by Jackson Warren

  • Esports platform provider