ESE Completes Acquisition of 9327-7358 Quebec Inc. DBA GameAddik, Adding New Technology to ESE’s Global 360 Esports Business
- Acquisition anticipated to strengthen ESE’s position in esports and gaming, adding GameAddik’s existing client base to ESE’s. Clients include some of the largest video game developers in the world.
- In fiscal 2020, GameAddik generated Revenue of $24.0 million and Income from Operations of $4.7 million (unaudited).
- Acquisition will deliver on core strategic priorities of (i) increasing revenue and profitability, (ii) expanding tier-1 client base, (iii) strengthening technology stack, (iv) expanding operational geography, (v) adding experienced executives to ESE’s management, and (vi) increasing platform scalability through unique and high value business offerings.
VANCOUVER, British Columbia, Feb. 14, 2022 (GLOBE NEWSWIRE) -- ESE Entertainment Inc. (TSXV: ESE) (OTCQB: ENTEF) (the “Company” or “ESE”) is pleased to announce that, further to its news release dated December 1, 2021 (the “Announcing News Release”), it has completed its acquisition of 100% of the shares of 9327-7358 Quebec Inc. DBA GameAddik (“GameAddik”), a Canadian technology company focused on gaming and esports. In connection with the closing, key members of the GameAddik team have been engaged by ESE to ensure continuous business operations and a smooth transition.
GameAddik Business
GameAddik is a technology company focused on the video game industry. The company creates and executes its performance model technology software to generate users and increase the reach of games for its customers, which are primarily video game developers. GameAddik, through its wholly owned brand PWN Games, is considered one of the top CPA (cost-per acquisition) networks for gaming by gamesight.io.
Key Transaction Highlights:
- Revenue and EBITDA Growth: GameAddik produced revenue of $24.0 million and Income from Operations of $4.7 million during fiscal 2020 (unaudited).
- Adds New Technology and Capabilities: GameAddik has proprietary technology and systems that are specifically tailored to help video game developers reach more users.
- High-Value Customer Base: GameAddik has a diversified and high value customer base that includes some of the largest video game developers on the market today.
- Ability to Deliver Results: GameAddik reaches 30 million qualified gaming users monthly through its publisher network, enabling the company to register over 300,000 new high-value players every month for its customers.
- Opportunity to Enter iGaming: The technology provided by GameAddik is anticipated to be directly applicable to the iGaming industry, which ESE may seek to enter.
- Strong Alignment with Existing Management and Team: Transaction price has been paid primarily through ESE shares that will vest over a three-year period, incentivizing teams.
- Proven Executive Team: Transaction has brought existing executive and management team from GameAddik, which has a demonstrated track record of success in the gaming and technology industries.
For further information respecting GameAddik and the terms of the transaction, please see the Announcing News Release.
Konrad Wasiela, CEO of ESE, commented, “The completion of this acquisition signifies a new phase in the growth trajectory of ESE. By adding a new business unit with a proven history of strong financial performance, we are ready for rapid scale. We now have a significant physical presence in Montreal, Canada, that will accelerate our North American roll-out. We are also excited to have GameAddik’s world-class executive team join our family as we continue to develop and scale ESE. We believe this acquisition will supercharge our existing business and take it to the next level.”
Eric Jodoin, CEO of GameAddik, commented, “The GameAddik team is very happy to complete the Acquisition by ESE. With our developed technology and large-scale user acquisition expertise, we are confident the synergy created by the combined company will bring the group to another level. ESE’s solid presence in the fast-growing esports market is anticipated to bring a whole new set of growth opportunities to GameAddik. With both organizations sharing common values and organizational principles, GameAddik is looking forward to representing ESE in North America and establishing a new level of financial performance.”
About ESE
ESE is a Europe based entertainment and technology company focused on gaming, particularly on esports. The Company provides a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues. In addition to the Company’s organic growth opportunities, the Company is considering selective acquisitions that align with its objective of becoming a dominant global player in esports technology and infrastructure. | http://www.esegaming.com
Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, statements with respect to the continued engagement of key members of GameAddik’s team following Closing; the anticipated effect of the GameAddik acquisition on ESE’s position in esports and gaming; the GameAddik acquisition delivering on core ESE strategic priorities; GameAddik’s technology being directly applicable to the iGaming industry, which ESE may seek to enter; vesting of the transaction consideration shares over time; the GameAddik acquisition signifying a new phase in ESE’s growth trajectory; ESE being ready for rapid scale; ESE accelerating its growth globally; the GameAddik acquisition supercharging ESE’s existing business and taking it to the next level; the synergies created by the combined company bringing the group to another level; ESE’s solid presence in the esports market bringing a whole new set of growth opportunities to GameAddik; GameAddik representing ESE in North America and establishing a new level of financial performance. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE ESE Entertainment Inc.
For further information about ESE, please contact:
Daniel Mogil, Investor Relations
investors@esegaming.com
647-492-1535
