Torque Esports Corp (formerly Millennial Esports Corp.) and UMG Media Ltd., have entered into a binding letter of intent dated Oct. 21, 2019, whereby Torque will acquire UMG in an arm’s length transaction.
Torque Esports recently restructured its business and leadership team and rebranded from Millennial Esports. The company now focuses on two areas – esports racing and esports data provision. Torque’s portfolio includes mobile racing game developer Eden Games, agency and “World’s Fastest Gamer” operator IDEAS+CARS (Silverstone, United Kingdom), esports data and analytics firm Stream Hatchet (Barcelona, Spain), and racing simulator manufacturer Allinsports (Formigine, Italy).
UMG Media is an esports company in North America, providing online and live tournaments as well as the creation and distribution of original esports content.
“We have been in contact with the UMG team for over a year now and have followed their journey with interest. We have been impressed both with the size of their business and the level of engagement with their gaming audience. Those two metrics, audience size and engagement, will define the winners in the gaming industry over the next few years,” said Darren Cox, President and CEO of Torque Esports in a release.
“UMG also has other, less obvious, benefits to us. Combining their traffic with our Stream Hatchet data business will give us a lead in audience insight for brands, while UMG’s content delivery will also combine well with YouTube channel Let’s Go Racing, our recently announced acquisition.”
The transaction is subject to the approval of UMG shareholders, Torque completing the acquisition of 51% of Allinsports, receipt of specific regulatory, court, and stock exchange approvals, and certain other closing conditions customary in transactions of this nature. Both parties have until Oct. 28, 2019, to complete their due diligence and execute a definitive arrangement agreement.
Before the acquisition by Torque, UMG intends to complete a non-brokered private placement of $1.2M of UMG shares at $0.12 per share.