Savvy Gaming Group acquires and merges ESL Gaming and FACEIT to create a new global leader in competitive gaming - theESL FACEIT Group
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MTG owns 91.46% of ESL Gaming, which corresponds to
USD 960 million of the total enterprise value, representing a total return on investment of 2.5 times invested capital. Net proceeds are expected to be approximatelyUSD 875 million , including transaction related costs and fees. The sale of the shares will be exempt from tax
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Following the transaction, MTG will focus fully on accelerating growth in its pure-play gaming business. MTG intends to return at least 40 percent of the net proceeds to its shareholders, while the rest of the proceeds will be used to strengthen MTG's position in the global gaming market and continued execution of its buy and build strategy
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Under MTG's ownership ESL Gaming has achieved significant scale and increased revenue to become the largest independent esports company globally
- The transaction is expected to close in Q2 2022
The merger with FACEIT and the transaction with SGG reflects MTG's realization of its long-term strategy for the esports vertical: to expand ESL Gaming's presence throughout the whole value chain, including B2C services and to drive long term growth. As part of this ambition, MTG initiated discussions with FACEIT to arrange and structure the merger. The transaction ideally positions the new company to pursue accelerated growth on the back of an integrated B2B and B2C product, while remaining closely aligned with the global gaming community and its values.
The transaction is expected to close in Q2 2022. Net2 proceeds to MTG are expected to be approximately
A milestone for MTG and ESL Gaming
"MTG has a long history of identifying successful companies and leveraging talented teams to create shareholder value, including backing them with additional capital. We were in advanced discussions with FACEIT to merge the two businesses and received approaches from parties who shared our vision and who were interested in acquiring or investing in both companies. In response, we embarked on a process to review our options and the transaction announced today is the culmination of that process and represents an exceptional crystallization of value for MTG's shareholders. The merger with FACEIT will also enable the new company to bring gamers a wide range of new services and products. We are convinced that Savvy is the right owner who will continue to invest in the development of
Return to shareholders, and acceleration of pure play gaming from a strong position
Based on the envisaged transaction timetable, MTG's Board of Directors expects to propose the return of funds to its shareholders in connection with the Annual General Meeting on 24th
MTG has a well-established position in gaming, with some of the industry's most popular games and brands. Across the last 12 months, MTG has successfully acquired and integrated the dynamic and fast-growing gaming companies
"For MTG, the transaction represents an opportunity to crystallize the value created in the esports vertical, share proceeds with shareholders who have supported us on our journey and to emerge perfectly positioned for further growth. Our gaming vertical has already been immensely successful and will now become the core of our business. Our 'Swedish family' model attracts gaming entrepreneurs from around the globe, and helps founders share knowledge and learn from each other in MTG's ecosystem. We will continue to support, nurture and grow our communities and be the best port of call for entrepreneurs who want to accelerate their growth."
Significant value creation with MTG as an active owner
MTG's experience as an active and engaged owner with a deeply established culture of entrepreneurship provides founders with the right environment to grow their businesses over time. MTG acquired ESL and DreamHack in 2015, and later merged the companies under the name ESL Gaming. Under MTG's ownership the company has achieved significant scale and increased its revenue base. MTG has supported the internationalization of ESL Gaming's global operational network in over 100 countries, the establishment of strategic partnerships such as the
Next step for ESL Gaming, FACEIT and SGG
The anticipated combination of ESL and FACEIT into the
"Both ESL and FACEIT have consistently delivered outstanding performance over a number of years. ESL has built a very strong track record around developing, broadcasting, and commercializing premium esports ecosystems. FACEIT has similarly developed a world-class reputation for providing digital platforms for competitive gamers.
Savvy has committed to invest heavily in the games and esports industry and to materially strengthen the global games community. And as new owners, we remain fully supportive of ESL's and FACEIT's respective strategies and leadership, and to driving their businesses forward to support the continued success of competitive gaming. Our investment will continue to put fans, teams, players, developers, and publishers needs first, whilst realizing our exciting, combined vision."
Conference call
The company will host a conference call on
+46 (0) 856 618 467 | |
+44 (0) 844 481 9752 | |
US | +1 646 741 3167 |
Std. International | +44 (0) 2071 928338 |
Access pin code | 616 293 8 |
Please note that only dial-in participants can ask questions during the conference call. The conference call will also be streamed via the following link:
https://edge.media-server.com/mmc/p/38mzhk3a
For more information
Direct: +46 (0) 72 084 00 82, simon.eliasson@mtg.com
Direct: +46 (0) 70-273 48 79, lars.torstensson@mtg.com
This information is information that
Advisors
About MTG
MTG (
About ESL Gaming
ESL Gaming is the world's leading esports company. For more than two decades, we have been shaping the industry and leading esports and gaming innovation globally across the most popular video games, creating a comprehensive ecosystem with opportunities for players to go from zero to hero, and for fans to witness the best stories esports has to offer
About FACEIT
FACEIT is the leading tech platform for competitive multiplayer games, with more than 22 million users. FACEIT allows players and organizers to easily play and mange smooth, fair and rewarding competitive experiences for multiple game titles. For developers, FACEIT's advanced software development kit (SDK) allows game creators to easily integrate user-friendly competitive gaming directly into their titles.
About
Its investments will create opportunities for participation and progression in the sector, across gender, geography, means and ability. SGG's investments are intended to drive growth of the sector globally, making it a more supportive, exciting, and rewarding place for fans, players, developers, and technology innovators, and facilitate broader, more equitable access to this fast-growing, dynamic sector. SGG's CEO is
1) USD/
2) The difference between gross and net proceeds is primarily explained by betterment payments, and secondarily by transaction costs and fees
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