Frisco’s Complexity Gaming sells to GameSquare Esports for $ 27 million


Frisco-based Complexity Gaming said on Wednesday it had sold to GameSquare Esports, a publicly traded esports company, for $ 27 million, and the two companies said they wanted to build a global esports powerhouse.

Toronto-based GameSquare acquired Complexity in an all-equity deal that values ​​it at $ 33 million. GameSquare trades on the Canadian Securities Exchange.

Dallas Cowboys owner Jerry Jones, an investor in Complexity, has said he hopes the deal will “accelerate” revenue growth for the esports company he and real estate mogul John Goff. acquired in 2017.

The combined company expects revenue of $ 28 million in 2022.

As part of the deal, Jones and Goff will increase their stake in GameSquare, and the two are primary investors in a $ 13.7 million non-public share offering for the Canadian company. Dallas Cowboys CFO Tom Walker and Goff Capital President Travis Goff will win seats on GameSquare’s board of directors.

The Jones family, the Goff family and Jason Lake, founder and CEO of Complexity, will collectively own 47% of the combined company. GameSquare has also entered into a marketing partnership with the Dallas Cowboys.

Lake will also become the global head of esports for GameSquare and continue to lead Complexity, the company said. In his expanded role, Lake will seek to grow GameSquare’s footprint globally.

The company will remain at The Star in Frisco, operating from its headquarters, which was completed in 2019 with a seven-figure investment from Jones and Goff. He also extended his space lease in Frisco for several years, Lake said.

“We are becoming sister companies alongside other verticals of esports, marketing, merchandising … and other companies that [GameSquare is] looking to acquire, which gives us diversification into an industry that can sometimes be difficult to monetize, ”said Lake.

Lake described the impact of the pandemic as a “double edged sword” for esports organizations.

“On the one hand, we have had skyrocketing viewership, historic records and a commitment to games and e-sports. But on the other hand, as you know, sponsorships are a big part of an organization’s income, ”Lake said. The morning news from Dallas. “And a lot of these companies were in trouble, or they were sort of on hiatus and waiting to see how this was going to play out. So they weren’t very keen on necessarily executing larger trades or new trades. “

The acquisition combines Complexity’s winning competitive esports experience with GameSquare’s expertise in content creation, sales, marketing and branding.

Complexity takes pride in its esports competition and field teams in powerful game titles including Counter-Strike, Apex Legends, Valorant, Fortnite and FIFA. Prize money for esports continues to soar, and the Complexity Apex team recently entered a global tournament with a prize pool of $ 2.58 million. The company has won over 140 championships and, at 15, is one of the oldest esports organizations in the country.


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