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Helix and ggCircuit Are Purchased by Esports Entertainment Group

27 October 2020, 17:36
Votes: 1

The US-based gaming firm Esports Entertainment Group (EEG) announced the deal with cybersport operator Helix eSports and software company ggCircuit. A $43 million deal is aimed at expanding the influence on the US and global esports market, creating a strong vertical with real influence in different sectors. Now the financial department of EEG has to adjust its economic forecasts for upcoming years as it will influence the company's share prices.

Helix and ggCircuit Are Purchased by Esports Entertainment Group

The latest cybersport news by Login Casino has already informed about the EEG's Three Pillar Strategy, which is aimed at the increase in three primary directions. Thus, the company wants to be the organizer of cybersport events, promote esports betting, and traditional sports wagering. The $43 million deal with two influential companies allows EEG to expand every direction it has declared.

Thus, ggCircuit's potential is somewhat huge as the firm provides software for gaming centers using cloud computing technologies while also can give flexible payment solutions even for enterprise customers. The company is already cooperating with global hardware leaders like Dell, Lenovo, and GameStop. It has a strong presence in some of the US universities and a 2million gamers base.

Helix eSports also gives pretty interesting bonuses that can be used in esports. The company owns five modern gaming centers in the US, which can be used as bootcamps or tournament gaming locations for huge competitions. The company also owns Genji Analytics, which is a modern AI center that helps to make decisions in the cybersport industry and develops players' solutions.

What does this deal mean in practice?

According to the EEG's CEO, Grant Johnson, the corporation receives direct help in organizing esports events. At the same time, he admitted the firms' positive influence on developing better wagering strategies due to both firms' experience. Logically, EEG will use the acquired facilities to realize its plans in the gaming industry.

The company now needs to provide recalculation of the financial forecast as it has made its initial public offering on NASDAQ earlier this year in spring. The previous economic assumptions were $13M in revenue for 2021 and $25M for 2022. If the acquisition of Helix and ggCircuit ends without any obstacles, the forecast for 2022 may increase up to $40M.

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