ESE Entertainment (ESE), a company with interests in gaming, media production, and esports, has signed a letter of intent (LOI) to acquire World Phoning Group Inc. and Encore Telecom Inc. (together, WPG). 

The terms of the LOI indicate that the businesses will be restructured as a newly-incorporated company, with ESE holding 51% and WPG 49%, while giving ESE the right to purchase the remaining shares through a call option exercisable within three years of the transaction closing.

WPG operates in Europe and provides infrastructure and support services to sporting organizations, esports companies, and telecom providers worldwide. The company’s existing clients include the largest motorsports organization, Formula One. WPG generated more than USD 12.5 million in revenue over the last twelve months.  

The acquisition will expedite ESE’s strategy to establish its presence in the European market and become a global brand. WPG, having Canadian roots (similar to ESE), will provide synergies through its presence in the European market. 

ESE Entertainment generates revenue through media rights, sponsorships and advertising, events and merchandise, and competition earnings. The company has a presence in Europe, Asia, and North America. ESE’s esports assets include its professional esports teams (K1CK brand) competing in titles such as League of Legends, Apex Legends, FIFA 20, and the Rocket League. In addition, the company provides the physical and digital infrastructure for esports leagues and events. It owns and operates Rocketmania, one of the largest Rocket League competitions in Europe.