Esports Entertainment Group Provides Update on ggCircuit Acquisition and its South Bend Century Center Esports Arena Project

Rhea-AI Summary

Esports Entertainment Group, Inc. (GMBL, GMBLW) announced the upcoming completion of the Century Center Esports Arena in South Bend, Indiana, by mid-December 2020. The company is set to acquire ggCircuit and Helix eSports for approximately $43 million, enhancing its capabilities in the esports market. The arena will host esports enthusiasts and integrate ggCircuit's management system, boosting revenue potential. The project reflects the growing importance of esports as highlighted by the city’s commitment, emphasizing the strategic growth opportunities for Esports Entertainment Group.

Positive

• Acquisition of ggCircuit and Helix eSports valued at approximately $43 million to enhance esports capabilities.
• Completion of the Century Center Esports Arena expected by mid-December 2020, creating a venue for live esports events.
• Strong community support from South Bend, Indiana, and partnerships that could increase brand visibility.
• ggCircuit's existing B2B software model with over 1,000 connected locations and significant user engagement.

Negative

• High acquisition cost of $43 million may strain financial resources.
• Execution risks associated with the integration of ggCircuit and Helix eSports may affect operational efficiency.

NEWARK, N.J., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Esports Entertainment Group, Inc. (NasdaqCM: GMBL, GMBLW) (or the “Company”), an online esports tournament and gaming company, today announced ggCircuit LLC (“ggCircuit”) is expected to complete the buildout of the Century Center Esports Arena in South Bend, Indiana by mid-December 2020.

The Company entered into an agreement in October 2020 to acquire ggCircuit and Helix eSports LLC (“Helix”) in a deal valued at approximately $43 million.

The Century Center Esports Arena will serve as a destination for esports and gaming enthusiasts in the South Bend metro area. Located in the city’s convention center, visitors will be able to participate in live events and tournaments, as well as spectate. The semi-permanent installation will create a unique environment for esports events as well as provide a location for attendees of other Century Center events to participate in gaming activities.   ggCircuit won the mid six-figure contract in a competitive public bidding process that concluded in late September.

Jeff Jarnecke, Executive Director at the City of South Bend, Indiana, shared, “The city has recognized that esports is a growing community and we look forward to partnering with ggCircuit and Esports Entertainment Group to bring this facility online to engage with esports enthusiasts from around the world during their visit to South Bend.”

ggCircuit is leveraging its specialized professional services team to coordinate purchasing, installation, and final design modifications, as well as deploying ggLeap, ggRock, and integrating the ggCircuit operation system into all facets of the player and administrative experience.

“The Century Center project is just one example of the many exciting projects we have underway,” commented Michael Winger, Director of Professional Services at ggCircuit. “The rapid growth in esports, and the synergies from our acquisition by Esports Entertainment Group, should allow us to significantly accelerate our revenue growth.”

"ggCircuit has built a great business that is a strong complement to our Three Pillar Strategy,” stated Grant Johnson, CEO of Esports Entertainment Group. “We look forward to completing the acquisitions of ggCircuit, Helix, and other exciting, high-growth businesses in the coming months and quarters as we continue to execute on our vision of building the leading global brand in esports.”

ggCircuit is a B2B software company that provides cloud-based management for LAN centers, a tournament platform, and integrated wallet/point-of-sale solutions for enterprise customers. ggCircuit has over 1,000 connected locations and has worked with enterprises such as GameStop, Dell, Best Buy and Lenovo as well as universities such as Ohio State, Syracuse and North Carolina. Their ggLeap product has over 60 million hours of usage by over two million unique gamers on tens of thousands of public gaming screens inside centers worldwide.

About Esports Entertainment Group
Esports Entertainment Group, Inc. is a licensed online company with a specific focus on esports and gaming. Esports Entertainment offers fantasy and pools on various esports events in a licensed, regulated and secure platform at vie.gg. In addition, Esports Entertainment intends to offer users from around the world the ability to participate in multiplayer mobile and PC video game tournaments for cash prizes. Esports Entertainment is led by a team of industry professionals and technical experts from the online gambling and the video game industries, and esports. The Company holds a license to conduct online gambling and 18+ gaming on a global basis in the UK, Ireland, Malta and Curacao. The Company maintains offices in New Jersey, the UK and Malta. For more information visit www.esportsentertainmentgroup.com.

FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact:

U.S. Investor Relations 
RedChip Companies, Inc.
Dave Gentry
407-491-4498
dave@redchip.com

Media & Investor Relations Inquiries
Jeff@esportsentertainmentgroup.com

FAQ

What is the acquisition value of ggCircuit and Helix eSports by Esports Entertainment Group?

The acquisition is valued at approximately $43 million.

When will the Century Center Esports Arena be completed?

The arena is expected to be completed by mid-December 2020.

What benefits does the Century Center Esports Arena provide?

It will serve as a gathering place for esports enthusiasts, hosting live events and tournaments.

How does the acquisition of ggCircuit and Helix eSports impact Esports Entertainment Group's revenue?

The acquisitions are expected to accelerate revenue growth by enhancing esports capabilities.

What are the strategic goals of Esports Entertainment Group regarding esports?

They aim to build a leading global brand in esports through acquisitions and operational synergies.