Canadian company GameSquare Esports has signed an agreement to acquire esports organization Reciprocity.
GameSquare, which is the parent company of Code Red Esports, will issue $11.4 million in shares to Reciprocity security holders when the deal closes. They will receive additional shares if the company meets revenue and profit marks within 12 months.
Reciprocity is a gaming and esports company based in Toronto, in operation since 2017. It co-owns a CrossFire franchise in China and a 40 percent interest in a League of Legends team in Latin America. Its subsidiary corporation, GCN, Inc., is a digital media company focusing on gaming and an esports audience in Los Angeles.
The deal is expected to be finalized in March.
It was announced in November.
“The acquisition of Reciprocity is another step toward building Canada’s leading esports company,” GameSquare CEO Kevin Wright said then. “The team at Reciprocity has built a great organization that I believe will change the way the market looks at esports investing.”
--Field Level Media