ESE Entertainment Inc. (TSX-V:ESE) announced that it has entered into a letter of intent (LOI) to acquire Frenzy sp. z.o.o. as it seeks to reinforce its global proposition and deliver a fully-supported 360 solution for the esports and gaming industry.
Frenzy, a European esports media and production infrastructure company focused on the video game industry, is majority-owned by founder Piotr Zak, a member of the supervisory board of Cyfrowy Polsat S.A., one of the largest digital platforms in Europe and the largest in Central and Eastern Europe.
Under the terms of the LOI, ESE would acquire 100% of the issued and outstanding securities in the capital of the company, with 50% of the purchase price paid in cash, and the balance paid in common shares of ESE over two years from closing, subject to achievement of post-closing revenue-based milestones.
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“ESE will be able to take on global scale projects regardless of size, vertical or geography and execute at the highest level globally,” ESE CEO Konrad Wasiela said in a statement.
“This acquisition also will allow us to directly expand our relationship with media conglomerate Polsat, which provides unprecedented infrastructure for scale, growth and bandwidth. We are thrilled to be retaining Piotr Zak, the founder of Frenzy, to help drive the business to the next level and provide strategic support via the Polsat Group.”
Frenzy creates and executes esports and gaming events, broadcasts, and media content. It also operates professional mobile, automated TV equipment, allowing it to produce reality shows from every part of the globe. Its main revenue streams include TV production, events and league organizations, and advertising campaigns.
“We have built a very solid brand and are expanding on an international scale,” Zak commented.
“I believe that Frenzy, through its business combination with ESE, will be able to grow even faster and solidify its position in the dynamic and growing esports market.”
The acquisition remains subject to, among other things, satisfactory completion of ESE’s due diligence, the parties entering into a definitive agreement, and TSX Venture Exchange approval.
ESE is a Europe-based entertainment and technology company focused on gaming, particularly on esports, with ownership of multiple assets and world-class operators in the gaming and esports industries.
The company’s capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, sponsorship support, and a growing esports team franchise, K1CK Esports.
Contact the author at stephen.gunnion@proactiveinvestors.com