International esports company GameSquare Esports has announced the acquisition of privately-held marketing agency Cut+Sew and Zoned.
According to the release, the purchase will total $7.85m (~£5.66m), with GameSquare paying in cash and shares.
As a result of the acquisition, GameSquare Esports will look to benefit from Cut+Sew and Zoned’s marketing services, as well as being able to target new sectors. Some expansion options mentioned in the announcement include traditional sports, gaming, emerging technology, new media, music, and fashion.
Despite acquiring the marketing agency, the Co-founders and management team of Swingman, which includes Matt Hilman, Devon Woodruff, and Sean Maher, will continue to run Cut+Sew and Zoned.
Justin Kenna, CEO of GameSquare Esports,commented: “Cut+Sew/Zoned operates at the intersection of gaming, sports, new media, and understands how to bring the cool factor to brands and client engagements. Having worked with Cut+Sew/Zoned in the past, I know the high quality of their work and also management’s ability to profitably grow their business.
“Under GameSquare, I see tremendous potential for Cut+Sew/Zoned to accelerate their top-line growth while generating healthy EBITDA margins of roughly 40%, based on past performance, adding to our portfolio of profitable companies. I expect that Cut+Sew/Zoned will be instrumental in helping to monetize Complexity Gaming’s incredible media assets.”
Some of Cut+Sew and Zoned’s clients in the esports and gaming business include Amazon’s Crown Channel, Tiv, Mavix Chairs, HyperX, and Play One Up. Earlier this month, GameSquare purchased Complexity for $27m (~£20,2m) in an all-stock transaction, with the latter’s current ownership group becoming ‘major shareholders’ of GameSquare.
Matt Hilman, Co-founder of Cut+Sew and Zonedadded: “Having worked with Justin during his time at FaZe Clan and having watched the progress that GameSquare has made in a short time, joining the GameSquare team makes strategic sense to continue scaling Cut+Sew/Zoned’s business.
“We have seen amazing growth in gaming + esports and the convergence that is taking place with traditional sports, and we think the opportunities that GameSquare is creating puts us in the right place at the right time to bring our work ethic and creativity to projects with global brands, including Complexity Gaming and the Dallas Cowboys.”
(Photo: GameSquare Esports)