Cologne, Germany — Global law firm Norton Rose Fulbright has advised Modern Times Group MTG AB (MTG) on the sale of ESL Gaming to Savvy Gaming Group (SGG). ESL Gaming is valued at an enterprise value of $1.05 billion. MTG holds 91.46 percent of ESL Gaming.
ESL Gaming is the world’s largest independent esports company (Photo © ESL Gaming). Following the transaction, MTG will fully focus on accelerating the growth of its pure-play gaming business. MTG intends to distribute at least 40 percent of the net proceeds to its shareholders, while the remainder of the proceeds will be used to strengthen MTG’s position in the global gaming market and to further implement its buy-and-build strategy.
SGG also acquires FACEIT at the same time and will merge the two companies into the leading global platform in the competitive gaming sector — the ESL FACEIT Group. The transaction is subject to regulatory approval, which includes an antitrust and foreign trade review.
The Norton Rose Fulbright team was led by London partners Sean Murphy and Clementine Hogarth and Frankfurt partner Nils Rahlf.
“The sale of ESL will enable MTG to focus on its gaming business and we are pleased to have successfully partnered with MTG on this exciting transaction. Norton Rose Fulbright’s M&A practice has had a dynamic start to 2022, and we expect this to continue,” says Nils Rahlf.
The Norton Rose Fulbright team also included senior associates Victoria Scopes and Jan-Peter Heise and associates Jessica Berkeley and Rebecca Lander.
Additional support was provided by London partners Michael Black, Mike Knapper, Dominic Stuttaford and Michael Alliston, Frankfurt partner Tino Duttiné and Hamburg partner Tim Schaper, as well as senior associates Kyle Rainsford and Alex Redbourne.
The law firm has already advised MTG on the acquisition of shares in InnoGames GmbH (InnoGames) and on the acquisition of Hutch Games Ltd (Hutch).
About ESL Gaming
Cologne — ESL Gaming is the world’s leading esports company. For more than two decades, we have been shaping the industry and leading esports and gaming innovation globally across the most popular video games, creating a comprehensive ecosystem with opportunities for players to go from zero to hero, and for fans to witness the best stories esports has to offer.
Stockholm — MTG is a pure-play esport and gaming investment company. We have a portfolio of companies in two verticals, esport and gaming, comprising some of the strongest brands in the industry. MTG strives to be the partner of choice for esport and gaming entrepreneurs, bringing industrial expertise, know-how and financial flexibility. We have an active ownership approach, working in close collaboration with our portfolio companies to drive long-term profitability and sustainable growth. www.mtg.com
About Norton Rose Fulbright
Norton Rose Fulbright is a global business law firm. With more than 4,000 lawyers in over 50 offices worldwide in Europe, the United States, Canada, Latin America, Asia, Australia, Africa and the Middle East, we advise leading national and international companies.
We offer our clients comprehensive advice in all major industries. These include Financial Institutions; Energy; Infrastructure, Mining and Commodities; Transportation; Technology and Innovation; and Life Sciences and Healthcare. Our global Risk Advisory Group combines this extensive industry experience with its expertise in legal, regulatory, compliance and governance matters. This enables us to provide our clients with practical solutions to the legal and regulatory risks they face.
The Swiss association Norton Rose Fulbright helps to coordinate the activities of Norton Rose Fulbright members, but does not provide legal advice to clients. Norton Rose Fulbright has offices in more than 50 cities worldwide, including London, Houston, New York, Toronto, Mexico City, Hong Kong, Sydney and Johannesburg. For more information, visit nortonrosefulbright.com/legal-notices.