Esports Entertainment Group has declared that it will finalize the takeover of online wagering and gaming operator Argyll Entertainment by or before July 31st. This follows the signing of a conclusive agreement for the acquisition.
The acquisition pact comes after a binding letter of intent was signed in May between Esports Entertainment Group and Argyll’s parent company, LHE Enterprises. The specific details of the deal have not been revealed.
Esports Entertainment’s chief executive, Grant Johnson, characterized the final agreement as a “significant milestone” for the company.
Integration efforts between the two entities have already commenced, with Argyll’s CEO, Stuart Tilly, and CFO, Dan Marks, joining the Esports Entertainment leadership team. Tilly has been designated as company secretary, while Marks has been appointed as the operators CFO.
These individuals are a key component of the firm and will aid in the development of a user base surpassing 100,000 on Argylls, positioning us favorably for future revenue growth, stated Johnson.
Tilly further emphasized that the agreement will grant Esports Entertainment exclusive ownership of proprietary content, including its leading website SportNation.bet and its rewards program, which he highlighted contributed $12 million in revenue during 2019.
“The esports industry is thriving,” he continued.
“[Our] combined operations will exhibit enhanced financial strength, and the utilization of their 30 employees’ expertise and extensive knowledge in marketing, technology, risk management, and regulation will place Esports Entertainment Group in a prime position to capitalize on a multitude of opportunities within this rapidly expanding market.”
This follows Esports Entertainment’s public listing on the Nasdaq Stock Market in the United States in April, subsequent to which the company undertook a series of financing endeavors, raising $6.2 million through the execution of warrants as of June 8th.
The company also secured $8.4 million by upgrading its stock to the Nasdaq.
The company is currently seeking entry into the US market and in May established a subsidiary, GMBL New Jersey. It now intends to apply for a sports betting license in the state in the near future.
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