GameSquare Esports set to acquire Reciprocity as M&A in eSports continues
By Bob Garcia
The deal will cost the eSports company more than $20 million
Mergers & Acquisitions (M&A) have been gaining steam this year, especially as companies look to reduce the impact caused by COVID-19. The eSports ecosystem has seen its share of activity, as well, and a new one was just added to the list. GameSquare Esports Inc., a publicly-listed eSports agency, has announced that it is going to purchase Canadian eSports organization Reciprocity in a deal reportedly worth around $21 million.
GameSquare is making the purchase through the issuance of new shares, said to total 43.75 million. An additional 20 million shares, worth approximately $10 million, depending on market adjustments, will be available to purchase within 12 months if an agreement can be reached. This is GameSquare’s first acquisition since it went public on the Canadian Securities Exchange last month after completing a reverse merger with Magnolia Colombia Ltd.
Kevin Wright, GameSquare’s CEO, said in a statement, “The acquisition of Reciprocity is another step toward building Canada’s leading esports company. The team at Reciprocity has built a great organization that I believe will change the way the market looks at esports investing. Reciprocity and its wholly-owned subsidiary GCN, Inc. (‘GCN’) are led by industry veterans that understand the convergence of media, entertainment, sports and finance as shown by the top tier clients that GCN works with, while committing to growing an EBITDA positive business. I have high expectations of the leadership at Reciprocity and believe this will prove to be a transformative moment for GameSquare.”