Enthusiast Gaming acquires U.GG for $45m
Toronto-based media and content platform Enthusiast Gaming has announced the acquisition of Outplayed, the parent company of League of Legends statistics and data visualisation service U.GG.
The total consideration is approximately $45m (~£33.6m) in cash and stock, which will be paid at closing and through a schedule of deferred payments. The acquisition also includes earnouts of potentially up to $12m (~£8.6m), subject to certain performance milestones being achieved within a two-year period.
Image credit: Enthusiast Gaming
Adrian Montgomery, CEO of Enthusiast Gaming, stated: “League of Legends is one of the biggest games in the world, and U.GG is one of the game’s largest fan communities and stats sites.
“Financially, the Acquisition is accretive and integrates very well within our existing business model, adding new media availability and opportunities for our direct sales team, proprietary content, and subscription offerings. Shinggo, Alan, and the U.GG team have built something special, and we are excited to welcome them to the Enthusiast Gaming family.”
According to the release, the purchase price is comprised of:
i) $7.5m (~£5.6m) in cash paid on closing
ii) the issuance of 5.2m common shares of Enthusiast Gaming with an approximate value of $20.6m (~£15.3m), and
iii) two deferred payments of $8.5m (~£6.4m) each, payable on the first and second anniversaries of the closing date, which may be settled in cash or common shares at the option of Enthusiast Gaming
The earnouts are comprised of two payments of $6m (~£4.5m) each which may be settled in cash or common shares at the option of Enthusiast Gaming.
Shinggo Lu, Founder & CEO of U.GG, added: “We are excited to join Enthusiast Gaming as we continue building a go-to destination for League of Legends fans. Alan and I would like to thank the Sixers Innovation Lab for being an integral part of our success to date.
“We are ready for the next part of our entrepreneurial journey alongside some of the brightest players in gaming and esports.”
Esports Insider says: Enthusiast Gaming is pushing its brand across a range of platforms and the acquisition of Outplayed is another beneficial addition to its growing portfolio. It will be interesting to see how the company will take advantage of the LoL franchise through U.GG, which is now also expanding to mainstream media.