- Aquilini GameCo Inc. has raised $18.7M USD to acquire Luminosity Gaming, as well as fund growth initiatives and other corporate needs.
- Luminosity and The Aquilini Group are already partnered through the Vancouver Titans Overwatch league team, which Luminosity operates.
- The Aquilini Group owns the Vancouver Canucks NHL team. Canucks Sports and Entertainment will provide support services to Luminosity once the deal closes.
Aquilini GameCo Inc. has raised $25M CAD ($18.7M USD) to acquire Luminosity Gaming , the company announced this week, following last month’s issuance of a letter of intent. The financing will be used to fund the acquisition, as well as growth initiatives and working capital.
Luminosity Gaming and Aquilini are already partners through the Vancouver Titans Overwatch League team, which The Aquilini Group owns and Luminosity operates. The Vancouver-based organization also fields teams in games such as Call of Duty: Black Ops 4 and Fortnite .
According to the financing announcement, Aquilini GameCo Inc. will perform a reverse takeover of J55 Capital Corporation as part of the deal. Aquilini GameCo entered into a share purchase agreement with Luminosity Gaming owner Steve Maida in February.
Additionally, upon closing, Canucks Sports and Entertainment will provide marketing and business support services via a Vancouver Arena Limited Partnership. Canucks Sports and Entertainment is the company behind the Vancouver Canucks NHL team, and The Aquilini Group owns both the company and the Rogers Arena in Vancouver.
When the deal is completed, Aquilini Investment Group General Manager Francesco Aquilini is expected to be Aquilini GameCo’s non-executive chairman and director. Former Rogers Media GM Adrian Montgomery will be CEO and director, while Maida will serve as president and director.
The announcement notes a July 18 deadline for escrow release conditions to close the deal. Canaccord Genuity Corp. was the agent for the target financing.
The acquisition is similar to that of Splyce by OverActive Media Group last year. OverActive Media (OMG) and Splyce partnered to establish the Overwatch League’s Toronto Defiant, with OMG making an investment in Splyce prior to the announcement, and then OMG fully acquired the organization later in the year.
TEO Business Analyst Tobias Seck explained the complexities of the deal with the following analysis:
In order for the Aquilini Investment Group to acquire the North American esports organization Luminosity Gaming a number of transactions are necessary:
- The Aquilini GameCo Incorporation—an Aquilini Investment group subsidiary—will perform a reverse takeover to acquire J55 Capital Corp—a shell company that is publicly traded at the Toronto Stock Exchange (TSX) Venture Exchange. This is a process usually used to avoid high costs and stock dilution as well as the lengthy process associated with an Initial Public Offering (IPO).
- The J55 Capital Corp has created a wholly-owned subsidiary—11305751 Canada Inc.—to perform a three-cornered amalgamation with the Luminosity Gaming Incorporation. The three-cornered amalgamation is a process in which Luminosity Gaming and 11305751 Canada will merge to become one company and with that J55 Capital Corp will take control of the freshly merged company as its parent company. This step is necessary to comply with Canadian law as the companies involved are incorporated under different business corporations statutes.
With the approach taken by the Aquilini Investment Group, it sets the new esports division up to be in a position to quickly seize potential business scaling and increase of capital opportunities.