- ESE (ESE) has signed a definitive agreement to acquire European esports media company, Frenzy
- Frenzy’s main revenue streams include TV production, events and league organizations, and advertising campaigns
- The company will pay just under C$2.5 million plus up to just over 2 million shares for the acquisition
- ESE is a Europe-based entertainment and technology company focused on gaming, particularly on esports
- ESE (ESE) is up by 3.54 per cent and is currently trading at $1.17 per share
ESE (ESE) has signed a definitive agreement to acquire European esports media company, Frenzy.
Frenzy is a media and production infrastructure company focused on the video game industry. The company creates and executes esports and gaming events, broadcasts and media content. It also operates professional mobile and automated TV equipment, allowing it to produce reality shows across the globe. Its main revenue streams include TV production, events and league organizations, and advertising campaigns.
The company was founded and is majority-owned by Piotr Zak, a member of the Supervisory Board of Cyfrowy Polsat, one of the largest digital platforms in Europe.
ESE’s consideration includes:
- C$1,242,500 in cash on closing
- 656,606 ESE common shares issuable on closing
- $1,242,500 in cash payable six months following the closing
- Up to 1,363,720 ESE common shares issuable in four six-month installments, with the first being issuable on the last day of Frenzy’s second full fiscal quarter. The shares are subject to revenue milestones over a two-year period
- ESE has also agreed to discharge a loan owed by Frenzy in the amount of $117,914 concurrently with the closing
Konrad Wasiela, CEO of ESE, stated,
“We are excited to sign this agreement with Frenzy, a leading production and technology company for the esports industry. Frenzy has contracts with some of the world’s largest gaming publishers and delivers a suite of products and services that complement ESE perfectly.
By completing the anticipated transaction, ESE will strengthen its position and deliver a fully supported 360 solution for the esports and gaming industry. We believe that anticipated synergies will be clear and immediate. Further, the acquisition of Frenzy allows us to expand our relationship with media conglomerate, Polsat, which further provides tier-1 infrastructure for expansion. I am also pleased to say that Piotr Zak, the founder of Frenzy, and his excellent team will be retained to help drive the business to new heights.”
ESE is a Europe-based entertainment and technology company focused on gaming, particularly on esports.
ESE (ESE) is up by 3.54 per cent and is currently trading at $1.17 per share as of 9:35 am ET.