Complexity, the gaming franchise backed by Dallas Cowboys owner Jerry Jones, has been acquired for $26.7 million by Toronto-based GameSquare Esports.
The deal is an all-stock transaction—Complexity’s shareholders will receive 83.3 million common shares in GameSquare based of a price of $0.32 ($0.40 CAD). Following the transaction Complexity’s backers, mainly Jones, founder Jason Lake and billionaire real estate developer John Goff, will own about 47% of GameSquare.
They will also be increasing their investment through private placement. Jones and Goff are leading a roughly $14 million ($17 million CAD) round for GameSquare, which has signed a multiyear gaming partnership with the Cowboys.
“Professional gaming has grown at an incredible pace in the three-and-a-half years since our group acquired Complexity,” Jones said in a statement. “I am confident that the partnership with GameSquare will fast-track revenue growth at Complexity while staying true to the team’s commitment to winning.” He added that GameSquare could soon become “the most successful esports organization in the world.”
Jones was one of the earlier traditional sports team owners to invest into competitive video gaming. Complexity’s headquarters are at the Cowboys’ massive practice facility in Frisco, Texas, and in 2019 the team re-branded to include the team’s star logo.
Complexity generated about $3.3 million in 2019 and $3.4 million in 2020, though its first three months of 2021 were tracking higher than both those results. The combined company is expected to generate roughly $22.6 million in revenue in the 2022 calendar year.
Cowboys CFO Tom Walker and Travis Goff, president of Goff Capital, will both join the GameSquare board. Lake will remain Complexity’s CEO and become global head of esports for GameSquare.
GameSquare Esports’ other assets include talent agency Code Red Esports, media firm GCN and a minority stake in two other organizations, Rainbow7 and LGD.REC. The group is currently looking to add to its family of brands beyond Complexity, according to the official announcement.