Esports Entertainment Group, a licensed Malta-based online gambling company focused on esports betting and 18+ gaming, is to finalise its purchase acquisition of LHE Enterprises Ltd, the holding company of Argyll Entertainment AG and its currently operating brand subsidiary, Argyll, through the signing of a definitive acquisition agreement. The closing of the acquisition is to be finalised on or before July 31. This followed an announcement in May as Esports Entertainment Group signed a binding letter of intent to purchases LHE Enterprises. Though the details have not been disclosed, this move is to further the position of the company in the future.
The integration of the two companies has already started since June 2020. as the senior executives from Argyll Entertainment, Stuart Tilly, who served as Argyll’s chief executive officer, and Dan Marks, who also as Argyll’s chief financial officer, were recently appointed by Esports Entertainment to join the ranks of its leadership team. Stuart Tilly has been appointed as the corporate secretary while Dan Marks was appointed as the chief financial officer. This decision was because of the two’s leadership and ability to perform in the iGaming industry empowering Argyll to rise from a business start-up into a £9.55m / $12m annual revenue business.
Grant Johnson, Esports Entertainment’s chief executive officer has labelled this recent agreement as a major milestone for their business. He further commented that the company is a great addition to their current organisation as they will be able to build on Argyll’s current customer base of more than 100,000 registered users, placing the company in a great revenue growing position in the future.
Stuart Tilly also added that since Argyll was a fast-growing and innovative online gaming company licensed in the UK and Ireland, the deal would grant Esports Entertainment access to exclusive and proprietary access to various content including its flagship website, SportNation.bet along with its high performing rewards program, which was the major contributing factor of Argyll’s £9.56m revenue last 2019. He further commented that the esports industry is strongest that it has ever been as esports gaming is continually gaining momentum. He also stated that this partnership will lead to a strengthened financial position as their combined operations and expertise in web-based technology, risk management, and gaming regulations will certainly put Esports Entertainment Group in a good position as it will be able to capitalise on wealth opportunities ahead in the rapidly growing esports market.
This deal comes right after the company listed on the US Nasdaq stock exchange last April this year. This listing was followed by fundraising efforts that secured £4.98m / $6.2m through the exercise of warrants last June 8. After listing in the US Nasdaq stock exchange, the company was also able to raise £6.7m / $8.4m. This makes the Esports Entertainment the first esport betting company to be listed publicly on the Nasdaq stock exchange.
The company is now eyeing to expand across the US market after establishing its US-based subsidiary, GMBL New Jersey last May. It is now planning to apply for a betting license in the state of New Jersey in the near future.