MTG sells ESL Gaming to Savvy for $1bn
January 26, 2022
Swedish eSports and gaming firm MTG has agreed to sell ESL Gaming to Saudi-backed Savvy Gaming Group at an enterprise value of $1.05 billion (€0.93bn).
MTG, which owns 91.46 per cent of ESL Gaming, corresponding to $960 million, said it was expecting net proceeds of around $875 million from the deal, including transaction-related costs.
It added that it would return at least 40 per cent of the proceeds to shareholders, while using the rest to strengthen its position in the global gaming market, and continue its “buy and build strategy.”
SGG is simultaneously acquiring FACEIT and will merge the two companies to create a global platform for competitive gaming – ESL FACEIT Group
Maria Redin, CEO of MTG, commented: “MTG has a long history of identifying successful companies and leveraging talented teams to create shareholder value, including backing them with additional capital. We were in advanced discussions with FACEIT to merge the two businesses and received approaches from parties who shared our vision and who were interested in acquiring or investing in both companies. In response, we embarked on a process to review our options and the transaction announced today is the culmination of that process and represents an exceptional crystallization of value for MTG’s shareholders. The merger with FACEIT will also enable the new company to bring gamers a wide range of new services and products. We are convinced that Savvy is the right owner who will continue to invest in the development of ESL FACEIT Group to nurture and entertain players and fans globally.”
Brian Ward, CEO of SGG, added: “Both ESL and FACEIT have consistently delivered outstanding performance over a number of years. ESL has built a very strong track record around developing, broadcasting, and commercializing premium esports ecosystems. FACEIT has similarly developed a world-class reputation for providing digital platforms for competitive gamers. Savvy has committed to invest heavily in the games and esports industry and to materially strengthen the global games community. And as new owners, we remain fully supportive of ESL’s and FACEIT’s respective strategies and leadership, and to driving their businesses forward to support the continued success of competitive gaming. Our investment will continue to put fans, teams, players, developers, and publishers needs first, whilst realizing our exciting, combined vision.”