Enthusiast Gaming, the parent company of a number of esports media brands like Luminosity, Vancouver Titans, Seattle Surge, acquired U.GG for $45 million to grow faster in the League of Legends space.
U.GG is a community platform-specific to League of Legends that uses game data to give players more insight into how they can improve their game. Currently, nearly eight million people use U.GG every month. The company is expected to generate $8 million in revenue and approximately $3 million in net operating income in 2022.
The deal includes the acquisition of U.GG by Enthusiast Gaming for approximately $45 million in cash and stock, and the inclusion of additional bonuses that could bring the total to $56 million if certain milestones are met by U.GG within two years of completion of the sale.
Shinggo Lu, Founder and CEO of U.GG, said:
“We’re excited to join Enthusiast Gaming as we continue to create a place to go for League of Legends fans. Alan and I would like to thank the Sixers Innovation Lab for being an integral part of our success to date. Together with some of the brightest players in gaming and esports, we’re ready for the next chapter of our entrepreneurial journey.”
For Enthusiast Gaming, this is one of their first big steps into League of Legends. The company has long been involved in many other esports and has numerous media brands in the esports space, but its resources were limited in the League of Legends scene. Now, Enthusiast Gaming has secured a place in the League of Legends ecosystem, acquiring one of the largest community hubs for the game’s massive player base.
Adrian Montgomery, CEO of Enthusiast Gaming, commented:
“League of Legends is one of the biggest games in the world, and U.GG is one of the game’s largest fan communities and stats sites. Financially, the acquisition is accretive and integrates very well within our existing business model, adding new media availability and opportunities for our direct sales team, proprietary content, and subscription offerings. Shinggo, Alan, and the U.GG team have built something special, and we are excited to welcome them to the Enthusiast Gaming family.”
Harris Blitzer Sports & Entertainment Founder and Managing Partner Josh Harris added the following comments:
“Over the last several years, the Sixers Innovation Lab and U.GG have worked in close partnership to expand U.GG’s reach and develop their industry-leading platform. This marks a promising new chapter in U.GG’s trajectory. Joining Enthusiast Gaming, one of the fastest-growing video game and esports companies in North America, will help accelerate U.GG’s growth, expand its reach, and elevate the fan experience. There is no shortage of innovation happening in esports, and we look forward to seeing how this exciting transaction will continue to push the industry forward and deliver new and exciting experiences to passionate fans around the world.”
