Global law firm Norton Rose Fulbright has advised Modern Times Group MTG AB (MTG) on the sale of ESL Gaming to the Savvy Gaming Group (SGG) in an all-cash transaction. ESL Gaming is valued at an enterprise value of USD 1.05bn. MTG owns 91.46% of ESL Gaming.
ESL Gaming is the world’s largest independent esports company. Following the transaction, MTG will focus fully on accelerating growth in its pure-play gaming business. MTG intends to return at least 40 percent of the net proceeds to its shareholders, while the rest of the proceeds will be used to strengthen MTG’s position in the global gaming market and continued execution of its buy and build strategy.
SGG is simultaneously acquiring FACEIT and will merge the two companies to create the leading global platform for competitive gaming – ESL FACEIT Group. The transaction is subject to regulatory approvals which will include anti-trust and foreign investment screening.
The Norton Rose Fulbright team was led by London partners Sean Murphy and Clementine Hogarth and Frankfurt partner Nils Rahlf.
Nils Rahlf, commented:
“The sale of ESL will enable MTG to focus on its pure-play business and we are pleased to have worked with MTG on this matter. The Norton Rose Fulbright M&A practice has had a strong start to 2022 and this looks set to continue.”
Sean, Clementine and Nils were supported by senior associates Victoria Scopes and Jan-Peter Heise and associates Jessica Berkeley and Rebecca Lander. The team also included London partners Michael Black, Mike Knapper, Dominic Stuttaford and Michael Alliston, Frankfurt partner Tino Duttine and Hamburg partner Tim Schaper. Further assistance was provided by senior associates Kyle Rainsford and Alex Redbourne.
The firm has previously advised MTG on its acquisition of shares in InnoGames GmbH (InnoGames) and its acquisition of Hutch Games Ltd (Hutch).