Gfinity (AIM: GFIN), a world-leading esports and gaming solutions provider, today announces the acquisition of the trade and assets of SiegeGG Corporation (“SiegeGG”), which operates siege.gg, a leading website for statistics, analysis and news around the Rainbow Six Siege video game (the “Acquisition”). SiegeGG with immediate effect will become part of the fast growing Gfinity Digital Media group (“GDM”).
Rainbow Six Siege is the highly popular first-person-shooter (FPS) game developed and published by Ubisoft. It has more than 70 million registered users and an established competitive gaming scene. SiegeGG is a leading authority for the Rainbow Six Siege competitive gaming community, with customers of its statistical information including e-sport tournament operators and Ubisoft itself.
The Acquisition gives Gfinity ownership of the underlying methodology and technology used to develop SiegeGG’s leading statistical analysis, which the Company will be able to extend across other game titles. Gfinity will also assume ownership of the siege.gg website, with access to its highly engaged audience, currently delivering one million page views per month, alongside nearly 100,000 Twitter followers.
SiegeGG will benefit from Gfinity’s content and search engine optimisation (SEO) strategy and advertising performance optimisation techniques, which will help to drive user growth and advertising spend. Gfinity will also help to expand the breadth of coverage SiegeGG offers, enabling the site to offer more enriching content outside of esports for Rainbow Six fans.
SiegeGG Corporation, the previous owners of SiegeGG, will be issued with 9.0 million new ordinary Gfinity shares in consideration for the Acquisition. The founder(s) will also be entitled to an annual payment of 30% of revenues generated by SiegeGG, subject to appropriate caps, in the first two years following the Acquisition, payable in annual instalments at the end of each year. Additionally, the founder(s) will be entitled to an annual payment of 20% of the net profits generated by SiegeGG subject to appropriate caps, in the first two years following the Acquisition. The SiegeGG management team will commence full time employment contracts with Gfinity.
For the year ended 31 December 2020, SiegeGG reported unaudited revenues of $0.1 million and profit before tax of c$40k. It had net assets at 31 December 2020 of $68k. It has already exceeded these revenue and profit figures in 2021 as it continues to grow. Gfinity directors believe that this growth can be significantly accelerated through inclusion in the GDM network.
The Acquisition of SiegeGG marks the third significant transaction made by Gfinity in the past nine months, following the acquisitions of Stock Informer in August 2021 and EpicStream in December 2020. These transactions are strengthening the performance of the Company’s fast growing GDM, improving the Company’s ability to offer broader and more in depth content to its dedicated fans.
Gfinity CEO John Clarke said: “Gfinity’s strategic focus is based on strengthening and growing ‘what we own’, in particular the Gfinity Digital Media group. We are excited to bring such a highly regarded website into the GDM and such a talented team led by Spencer into the Company. SiegeGG benefits from a highly engaged community of fans and industry-leading statistical analysis. Together with Gfinity’s technology and engagement expertise, we look forward to taking the site to the next level and leveraging the technology across multiple game titles. This transaction once again highlights the ambition of the Directors to continue to drive profitable growth within the Group”.
SiegeGG CEO Spencer Glenn said: “We’re very excited to be joining Gfinity. We’ve worked hard to build this project on our own and achieved success in doing so, but the resources and expertise that we gain from the Gfinity team will be invaluable in accelerating the work we’ve already been doing, as well as opening new doors that we never thought possible.”
