Canadian esports marketing and tournament organiser Alpha Esports Tech, Inc. (Alpha Tech) has signed a letter of intent (LOI) to acquire 100 percent of esports tournament and wagering platform HypeX, Inc. (HypeX.gg).
The share purchase agreement will exchange 700,000 common shares in the capital of Alpha Esports Tech, Inc. at $0.35 (~£0.26) each for all issued and outstanding HypeX shares.
HypeX.gg describes itself as a social gaming platform that hosts organised esports tournaments, performance wagers and cash events. The site recently exited beta, during which it ran over 100,000 competitive events and tournaments, giving over $50,000 (~£37,190) in prize pool money and partnering with more than 25 different esports organisations and 10 teams.
HypeX.gg co-founder Evan Ryer commented on the proposed acquisition in a release: “We are excited for the opportunity to join the Alpha Tech team on our mission to build the worlds greatest esports gaming platform. This potential deal demonstrates the significant progress HypeX has made since its inception in 2018 and will significantly expand our product capabilities and offering.”
According to the temporary HypeX.gg webpage, the platform will launch in eight days with a ‘seamless tournaments experience, new games and event modes, facilitated team forming, and more’.
Matthew Schmidt, interim CEO of Alpha Esports Tech added: “HypeX has done a tremendous job of building a state of the art gaming platform and they will bring a tremendous amount of value to Alpha Tech through user growth, tournaments, contests, experience, and more.
“HypeX will also provide us with two new leaders, Evan Ryer & David Levy, who are both technology entrepreneurs that are very well expertised in the esports industry, and will provide the company with many additional partnerships and user acquisition opportunities.”
Alpha Esports Tech’s vertical marketing strategy sees the firm employ sister companies, acquire partnerships and take part in acquisitions, such as HypeX.gg, to build multiple integrated revenue streams. Alpha Esports Tech runs GamerzArena, a subscription site which hosts online tournaments for titles like VALORANT, Rocket League, and APEX Legends
Through GamerzArena, Alpha Esports Tech recently partnered with the New Jersey Devils, Oxygen Esports, and Vancouver Whitecaps FC. The HypeX.gg acquisition will give Alpha Esports Tech access to an additional 50,000 users and an active tournament community that has grown over a short amount of time.
Esports Insider says: An esports community that also offers wagering gives potential marketers direct access to consumers who are already doing what they enjoy. Alpha Esports is getting in on the ground floor — right as HypeX leaves alpha testing — which allows the tech company to steer the platform in a direction that is most beneficial for its marketing clients.