In a move that will make one of the biggest esports infrastructure companies in the world, ESE Entertainment Inc. (TSX-V:ESE)(OTCQB:ENTEF) has acquired 51% of the business of World Phoning Group Inc., Encore Telecom Inc., and their two European operating subsidiaries, WPG Racing Solutions and Foresight Resolutions. The assets have been rolled up into a new Canadian company called World Performance Group.
ESE also has the rights to acquire the other 49% of the assets that it didn't acquire for additional payments in cash and stock.
Cumulatively, the assets comprise an enhanced solutions provider operating an infrastructure business for management of fan engagement for OTT & esports. WPG works with its customers to build new and improved B2C & B2B processes that align with the customer’s brand, boost retention, enhance fan interaction, improve ROI, and increase sales and profit margins. ESE currently operates an integrated esports ecosystem that includes advertsing and branding, esports events, teams and other assets.
In 2020, the new assets generated revenue in excess of $14,000,000. ESE CEO Konrad Wasiela recently said that the company now has a growing M&A pipeline with over $100 million annual revenue.
Shares of ESE have soared since the company came public in August. Trading as low as 17 cents on the Venture exchange in September, the stock exploded to a high of $4.58 last month before cooling off some. In Tuesday trading, shares are up 1.7% at $2.34.
