Esports Entertainment Group in advanced talks to acquire Argyll Entertainment

Esports Entertainment Group (EEG) is in talks to buy Argyll Entertainment after completing its listing on the Nasdaq Stock Market this month, EGR Intel has learned.

The two operators have entered into a non-binding letter of intent over the 100% buyout, for a proposed purchase price of $1.25m in cash alongside 541,667 shares of stock in EEG at $6 a share.

EEG – a Malta-based esports online gambling company – successfully uplisted to Nasdaq on 14 April under the GMBL symbol after closing $8.4m in its public offering.

The company’s flagship esports betting platform, VIE.gg, offers exchange-style wagering and pool betting on esports events via a Curaçao licence.

Argyll Entertainment is the UK-licensed parent company of sports betting brands Redzone and SportNation. It is managed by chief executive Stuart Tilly and employs 30 staff in London.

EEG is seeking to make Argyll chief financial officer Dan Marks its new CFO should the acquisition close, although there is no guarantee that it will, as nothing is contractually agreed.

New York-based Marks has served as Argyll CFO for the last four years, having previously worked in executive roles for both Barclays and HSBC.

EGR understands there are no plans to change the SportNation brand as it will provide a strong foothold for the combined group in the highly regulated UK market – a potentially attractive proposition for compliance-minded investors.

EEG believes the potential purchase would result in increased revenue, profitability or cashflow after integration. Discussions regarding the sale have been ongoing since ICE 2020.

“We are likely to face significant competition in seeking appropriate acquisitions or strategic collaborators and these acquisitions and strategic collaborations can be complicated and time consuming to negotiate and document,” EEG said in a February note to potential investors.