Mr. David Antony reports
UMG ENTERS INTO AN AGREEMENT TO ACQUIRE ACTIVATE ENTERTAINMENT LLC.
UMG Media Ltd. has entered into an agreement to acquire Activate Entertainment LLC. Activate is a creative management and production services company that specializes in e-sports events and activations.
- In 2019, Activate produced a number of major e-sports events, including the "Esports Experience" at the National Advertising Broadcaster (NAB) show in Las Vegas and the "Panasonic Esports Arena" at InfoComm in Orlando.
- Activate works with hospitality brands, such as Marriott International and Caesars Entertainment, on their e-sports initiatives.
- Activate helps corporate brands, such as Panasonic and Roland, develop points of entry into the e-sports industry.
- Activate has produced top-tier live-stream productions for clients at major shows, including E3, San Diego Comic Con, Dell Technologies World and the World Series of Poker.
Activate has offices in both Las Vegas and Los Angeles, and is led by Chris Iaquinta and Dirk Hagen, who have over 40 years of combined experience in the event management and production industry, with a focus on turnkey, custom activations for a wide variety of entertainment industries, both gaming related and beyond.
"Bringing Activate into UMG will greatly expand the services and expertise of UMG in the e-sports event management side of the industry," commented Dave Antony, chief executive officer of UMG. "Being able to add the experience of Chris and Dirk will be invaluable as UMG expands."
Activate was responsible for the broadcast, production and execution of over three dozen live premium e-sports and video game activations in the last calendar year, bringing its nearly four decades of professional execution and delivery to bear. Activate also serves as the director of gaming and e-sports for various entities, including NAB Show and the Metarama Gaming Festival.
"UMG represents the perfect structural partner that will allow our newly unified businesses to further raise the standard for e-sports live streams and event productions," commented Chris Iaquinta, president of Activate Entertainment. "Together, our ability to provide professional results and deliverables to clients, partners and customers will be greatly amplified."
In consideration for the acquisition of Activate, UMG will issue 2,333,333 common shares at a price of 30 cents per share. The shareholders of Activate have the ability to receive $3-million in additional common shares of UMG. The performance shares will be earned over the 18-month period following the closing of the transaction. The number of performance shares to be issued will be based directly on the gross revenue of Activate and will be issued at the 10-day weighted average price of UMG shares at the time of issue. The transaction is subject to due diligence and regulatory approval, including the acceptance of the TSX Venture Exchange. The transaction is an arm's-length transaction.
Closing is expected to occur in the next 30 days.
About UMG Media Ltd.
UMG is a premier e-sports company in North America that offers live gaming entertainment events and on-line play. UMG provides on-line and live tournaments as well as the creation and distribution of original e-sports content.
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