Industry
Kroc Bidco AS has entered into an agreement with Heroic Group AS to offer to acquire all issued and outstanding shares in Heroic.
According to the Heroic report on the Norwegian stock market, the new owner will NOK 2.00 ($0.19) per share of the company, which owns professional esport teams in CS:GO, Rainbow Six Siege and Sim racing.
The board of directors of Heroic unanimously recommends the shareholders of Heroic accept Krow Bidco's offer.
"Shareholders representing approx. 42%, including members of Heroic's board and executive management, have signed conditional share purchase agreements with the Offeror for the sale of their shares in Heroic at the Offer Price. The share acquisition is subject to the Offeror having entered into share purchase agreements to acquire in total 75% of all outstanding shares in the Company," noted the statement.
According to HLTV.org, Norway-based ULTI Agency helped broker the deal. This agency previously negotiated the sale of Gambit's CS:GO team to Cloud9 in April 2022. The outlet also reported that Krow Bidco AS is a "Norwegian private limited liability company owned by a regulated EU investment fund."
Heroic has been in a difficult financial situation for a long time, like many participants in the esports industry. In March, they raised NOK 10 million in investment, but it was much less than what the management was trying to find. In early February, Heroic announced its exit from PUBG esports, determining that continuing to compete in PUBG is no longer sustainable for the organization.
On 30 January 2023, former Heroic CEO Joachim Haraldsen said that the company will need NOK 80 million to sustain its business until the end of 2025, of which, a minimum of NOK 10 million will be needed before Summer 2023.