ESE Entertainment (ESE.V) signed a letter of intent to acquire Canadian telecom companies, World Phoning Group and Encore Telecom, today, according to a press release.
The two companies (WPG) respectively brought in revenue in excess of $12.5 million in the past year. WPG operates primarily in Europe and has established partnerships with some of the world’s most recognized brands, providing infrastructure and support with solutions for fan engagement of sporting organizations, esports companies and telecom providers worldwide.
“From day one, our vision has been to become the global leader for infrastructure and data in the gaming and esports industries. The Acquisition will position us one step closer to achieving that goal. Further, we are excited to work closely with WPG to build on their existing business, focusing on increasing revenue and profit margins. Wayne and his team at the WPG group have been able to secure long-term contracts with tier 1 customers across the globe, and they are just getting started,” said Konrad Wasiela, CEO of ESE.
WPG was one of the first service providers to engage fans of both sports and esports with outsourced business to business, business to customer and ecommerce support. They claim clients such as the largest organization in motorsports, with 500 million worldwide fans and the world’s largest esports company. Meanwhile, their telecom customer base includes tier-1 PTTs with over 150 tier-2 carriers. All of which added up to double-digit year over year growth for the company.
“We are thrilled to be joining with Konrad and his team at ESE. The synergies are clear; we are each proudly Canadian and both operate our respective businesses in Europe. Combined, we will have a team of nearly 100 in Canada, Germany, Romania, Poland, and more. We have common visions on how to grow the company and our combined resources and network will help us further extend our leadership working with the world’s leading sports and esports brands,” said Wayne Silver, CEO of WPG.
LOI terms include reorganization into a newly incorporated company, in which ESE will hold 51% interest with the remaining percentage going to WPG. The new business will continue to operate in the same capacity as before, and ESE will have the right to bu the rest of the 49%, which will be exercisable for three years after the deal closes.