Mail.Ru acquires ESForce for USD100 million

Qlik

Russian Internet company Mail.Ru has acquired e-sports group ESForce for USD100m, less any outstanding debt at closing, with a further performance-related sum payable at the end of 2018.

The acquisition process and advise non-interested managers, an independent board committee was formed. This committee received third-party evaluations from Deloitte and Morgan Stanley. The transaction has been approved by all non-interested and independent managers.

The eSports market continues to see rapid growth. In 2018, Superdata estimates that the global market will be around 1,600 million euros with some 300 million users. ESforce is one of the largest eSports companies in the world, and is the largest in Russia and Eastern Europe. The company has built a complete ecosystem where it occupies a leading position:

• The ownership of two world-class clubs: Virtus Pro and SK.
• Epic eSports Events, organizing EPICENTER and a series of lathes between teams in Dota 2 and CS: GO.
• 14 websites, 209 social media groups and video production studios that create live streams, attracting more than 82 million unique annual users.
• Media Cybersport, ru and Cybersport.com, which include CyberBase, the largest database in global eSports.
• Yota Arena in Moscow, one of the largest eSports tournament sites of more than 5,000 square meters and more than 1,000 seats.
• Trading and analysis platforms.
• International merchandising retailer of eSports, Fragstore.

In 2017 the company had 116 million users, 440 million sessions and more than 120 million hours of online content through streaming platforms. 2017 revenues will be around 19 million dollars, which was around 150% the previous year. Revenues in US dollars and euros accounted for around 60% of total revenues with advertising and rewards that amounted to almost 80% of revenues with the merchandise, events and content balance. With the large amount of fixed investment now made, we expect to see an increase in ESforce’s revenues of between 80 and 100%.

The CEO of Mail.Ru Group (Russia), Boris Dobrodeev, said: “We are very pleased that the talented team that has been responsible for creating this company remains with the company, and we hope to take advantage of our unparalleled position within social networks. and play to drive ESforce to even greater success. “