LONDON (ShareCast) - (Sharecast News) - E-sports and gaming company Gfinity announced the acquisition of the trade and assets of SiegeGG Corporation on Wednesday, which operates a "leading website" for statistics, analysis and news around the Rainbow Six Siege video game.
The AIM-traded firm said SiegeGG would become part of the growing Gfinity Digital Media (GDM) group with immediate effect.

It described Rainbow Six Siege as a "highly popular" first-person shooter (FPS) game developed and published by Ubisoft, with more than 70 million registered users and an established competitive gaming scene.

SiegeGG, meanwhile, was described as 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 would give Gfinity ownership of the underlying methodology and technology used to develop SiegeGG's leading statistical analysis, which the company would be able to extend across other game titles.

Gfinity said it would 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 would benefit from Gfinity's content and search engine optimisation (SEO) strategy and advertising performance optimisation techniques, which would help to drive user growth and advertising spend.

Gfinity would 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 owner of SiegeGG, would be issued with nine million new ordinary Gfinity shares in consideration for the acquisition.

The founders would 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 founders would 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 would enter full-time employment contracts with Gfinity.

For the year ended 31 December, SiegeGG reported unaudited revenues of $0.1m and a profit before tax of about $40,000.

It had net assets of $68,000 on that date, and had already exceeded those revenue and profit levels in 2021 as it continued to grow.

Gfinity's board said it believed that growth could be "significantly accelerated" through inclusion in the GDM network.

"Gfinity's strategic focus is based on strengthening and growing 'what we own', in particular the Gfinity Digital Media group," said chief executive officer John Clarke.

"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."

At 1236 BST, shares in Gfinity were down 0.34% at 4.44p.

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