Benzinga | May 12, 2021 07:20AM EDT

Enthusiast Gaming Acquires Tabwire; Terms Not Disclosed; Closing Expected To Occur By End Of Q2 2021

Enthusiast Gaming Holdings Inc. ("Enthusiast Gaming" or the "Company") (NASDAQ:EGLX) (TSX:EGLX), a media and content platform for video game and esports fans to connect and engage, today announced its plans to develop a subscription-based social network for gamers, codenamed Project GG. To facilitate the development of Project GG, Enthusiast Gaming has entered into a definitive agreement to acquire Tabwire LLC ("Tabwire"), which owns TabStats ( https://tabstats.com), for US$11 million in cash and stock (the "Acquisition"). The Acquisition will provide Enthusiast with a technology and data platform which provides gamers the ability to directly view their game data in real-time.

"The announcement of a unifying pan-Enthusiast social network with a premium subscription opportunity for gamers is a defining moment for us as our core GenZ and Millennial audiences have been moving away from traditional social networks and turning to gaming as an alternative," commented Adrian Montgomery, CEO of Enthusiast Gaming. "Project GG addresses these trends and will allow gamers to register their unique gaming profiles, compare stats, develop meaningful connections, and share content and ideas." He continued, "Tabwire marks an important milestone for Enthusiast Gaming to be able to bring Project GG to market later this year. It will provide us with essential data capabilities to deliver our customers a complete social offering with a more targeted, integrated and personalized experience for today's gamer. This is a meaningful next step towards becoming a technology-powered, media, esports and entertainment company."

Tabwire is a technology and data platform that enables gamers, by way of a registered user profile, to track their player and game stats. Tabwire has already built game play companion tools for Riot's Valorant and Ubisoft's Rainbow Six Siege with more than 13 million gamers interacting with the platform, collectively generating more than half a billion views in the last year. It has an aggressive roadmap to launch real-time stats for additional game titles in the coming months.

"We are in a unique position to successfully execute our mission to build a true platform for a game agnostic social network. Our unique vantage point and distribution platform that reaches over 300 million gamers monthly gives us unparalleled exposure to the full breadth of the gaming industry, from publishers to gaming media to influencers and esports teams," commented Menashe Kestenbaum, Founder and President of Enthusiast Gaming.

The Acquisition is subject to customary closing conditions, including regulatory approvals. Closing is expected to occur by the end of the second quarter of 2021.