Gfinity Plc (LON:GFIN) has accelerated its move into the North American market with the US$2.7mln acquisition of eSports services provider CEVO Inc.
Maryland-based CEVO has been supplying its technology, including its tournament management system, anti-cheat system and broadcast software, to Gfinity for a few years now.
Those “first class production and broadcasting services” are particularly relevant, given that Gfinity only last week unveiled plans to beam its Elite Series tournament around the world.
READ: Gfinity’s Elite Series to be broadcast around the world
Gfinity added that CEVO has built an “outstanding reputation” as the operator of its own eSports competitions and as a provider of technology services since it was founded back in 2004.
‘Determined to become a global player’
“We are delighted to have acquired one of the most reputable eSports technology players in the in the industry, which further strengthens our position as a market leader in eSports technology,” said chief executive Neville Upton.
“It also demonstrates our determination to become a leading global player in the industry having previously delivered events in the UK, France, Mexico and USA since the start of this year.
“CEVO's combined experience of 50 years in the market supplements our existing team of talented individuals - creating one of the most experienced eSports operators in the industry - leaving us well positioned to take advantage of a growing number of eSports opportunities in future.”
Consideration to be paid in cash and shares
Just shy of US$1mln in cash and a further US$700,000 in Gfinity shares will be paid up front, while a further US$420,000 in cash and US$300,000 in shares will be paid after the first year subject to certain performance milestones.
On top of that, current CEVO staff will also split a pot of around US$400,000 worth of Gfinity shares at the end of the first year, with a third of that amount linked to those revenue targets above.
In the year to 31 December 2016, CEVO generated revenues of US$826,000. As of 30 June 2017, the business had net assets of US$63,000 and US$60,000 in cash.