Enthusiast Gaming Pays $ 44 Million For League of Legends U.GG Fan Community

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Enthusiast Gaming Pays $ 44 Million To Acquire League of Legends U.GG Fan Community.

Nasdaq-listed Toroto-based Enthusiast Gaming has acquired Outplayed, the owner of U.GG, which is one of the largest League of Legends fan communities in the world. The company could pay an additional $ 12 million under a two-year earn-out agreement.

U.GG is expected to generate revenues of approximately $ 8 million and net operating income of approximately $ 3 million in 2022. In September, Enthusiast Gaming also acquired casual game publisher Addicting Games for $ 35 million. of dollars.

Founded in 2017 by Shinggo Lu and Alan Liang and based in Austin, TX, U.GG was incubated at Harris Blitzer Sports & Entertainment’s Sixers Innovation Lab, which is part of the Philadelphia NBA Sixers basketball franchise. .

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“We are thrilled to join Enthusiast Gaming as we continue to create a premier destination for League of Legends fans,” Lu, CEO of UGG, said in a statement. “Alan and I would like to thank the Sixers Innovation Lab for being an integral part of our success to date. We’re ready for the next part of our entrepreneurial journey alongside some of the brightest players in gaming and esports. “

Above: Adrian Montgomery is CEO of Enthuasiast Gaming.

Image Credit: Game Enthusiast

U.GG has grown into one of the world’s largest and most popular esports services, League of Legends, which had over 180 million players as of October.

“League of Legends is one of the biggest games in the world, and U.GG is one of the biggest fan communities and gaming statistics sites,” said Adrian Montgomery, CEO of Enthusiast Gaming, in a communicated. “Financially, the acquisition is accretive and fits very well into our existing business model, adding new media availability and opportunities for our direct sales team, exclusive content and subscription offerings. Shinggo, Alan and the U.GG team have built something special, and we are delighted to welcome them to the Enthusiast Gaming family.

U.GG is focused on providing data for smarter information about fans and players. By combining a rigorous approach to data science with a user-centric, proprietary experience, U.GG delivers actionable, data-driven insights supporting, educating, connecting and engaging its current monthly active user base of 8 million. . U.GG is featured on the League of Legends website as a resource for gamers.

League of Legends by Riot Games is a free-to-play PC game originally released in 2009 and is the flagship title from developer and publisher Riot Games. The game also attracts a very large audience of spectators for its competitive tournaments. The 2021 League of Legends World Championship held earlier this month averaged 30.6 million audience minutes (up 32%) and a peak audience of 73.8 million. The latter figure is 60% higher than last year, which was the previous record.

“Over the past few years, the Sixers Innovation Lab and U.GG have worked closely to expand U.GG’s reach and develop their cutting-edge platform,” said Josh Harris, Managing Partner of Harris Blitzer Sports & Entertainment, in a statement. “This marks a promising new chapter in UGG’s trajectory. Joining Enthusiast Gaming, one of the fastest growing video game and esports companies in North America, will help accelerate UGG’s growth, extend its reach and improve the fan experience. There is no shortage of innovation in esports, and we look forward to seeing how this exciting transaction will continue to move the industry forward and deliver new, exciting experiences to passionate fans around the world.

Payment was made in $ 7.5 million in cash, the issuance of 5.2 million common shares and deferred payments of $ 8.5 million each within the first two years following the closing date. . The earnings based on financial performance are divided into two installments totaling $ 12 million over two years.

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