Entertainment and technology company ESE Entertainment Inc. (ESE) has announced it has entered into a share purchase agreement with World Phoning Group Inc., Encore Telecom Inc., and their two subsidiaries collectively known as WPG.
The agreement will see ESE acquire a 51 percent stake in the business in a bid to further develop its esports offerings.
The news comes after ESE signed a letter of intent (LOI) in December 2020 to acquire the assets of World Phoning Group Inc. and Encore Telecom Inc.
As per the agreement, all of WPG’s assets will be combined into a newly formed Canadian company known as World Performance Group. Alongside purchasing the outstanding shares, ESE will also invest $750,000 (£539,765) in the company.
Konrad Wasiela, CEO of ESE Entertainment, spoke on the acquisition in a release: “The WPG acquisition is a cornerstone to our expansion plan. We have added a large, experienced team in Europe, which is part of our goal of becoming a global leader in the space. We are excited to add a veteran executive team led by WPG Founder, Wayne Silver. We hope to soon start to benefit from the many expected synergies between our businesses. Collectively, we are hyper-focused on revenue growth and increasing margins. This is just the beginning, and we are excited to scale both businesses and continue achieving corporate milestones.”
Once the deal has been completed, ESE Entertainment is likely to become one of the largest esports infrastructure companies in the world thanks to the continued acquisition of new clients and expanding its presence in a number of regions.
Wayne Silver, CEO of WPG, also commented on the deal: “I am thrilled to join Mr. Wasiela and believe in his vision to grow ESE into a billion-dollar company. We both agree that the best way to enhance shareholder value and future stock appreciation is to maintain ESE’s tightly controlled share structure and substantial cash resources. Mr. Wasiela believes infrastructure is key to the industry’s long-term success and has committed to providing the Corporation with the necessary resources to expand and acquire companies under the ESE umbrella. I’d like to thank my tremendous team and am looking forward to the next phase of rapid growth with ESE.”
Esports Insider says: Since its public listing, ESE Entertainment continues to expand its presence across numerous areas of the esports industry. For WPG, the deal is more than likely to provide an increased rate of expansion alongside further growth for the subsidiaries under the company’s banner.