ESE Entertainment Inc. announced that it has entered into a Letter of Intent to acquire Frenzy sp. z.o.o., a European esports media and technology company.

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, automated TV equipment, allowing it to produce reality shows from every part of the globe. Its main revenue streams include TV production, events and league organizations, and advertising campaigns. Frenzy is founded and majority owned by Piotr Zak, a Member of the Supervisory Board of Cyfrowy Polsat S.A., one of the largest digital platforms in Europe and the largest in Central and Eastern Europe.

Under the terms of the Letter of Intent, it is contemplated that ESE will acquire 100% of the issued and outstanding securities in the capital of Frenzy, with 50% of the purchase price paid in cash, and the balance paid in common shares of ESE over a period of two years from closing, subject to achievement of post-closing revenue-based milestones. The Letter of Intent also provides that Frenzy’s key personnel will continue to operate Frenzy’s business following closing.

Konrad Wasiela, CEO of ESE, commented, “By completing the acquisition of Frenzy’s market-leading production and technology team, ESE will reinforce its global proposition and deliver a fully-supported 360 solution for the esports and gaming industry. ESE will be able to take on global scale projects regardless of size, vertical or geography and execute at the highest level globally. This acquisition also will allow us to directly expand our relationship with media conglomerate Polsat, which provides unprecedented infrastructure for scale, growth and bandwidth. We are thrilled to be retaining Piotr Zak, the Founder of Frenzy, to help drive the business to the next level and provide strategic support via the Polsat Group.”

The acquisition remains subject to, among other things, satisfactory completion of ESE’s due diligence, the parties entering into a definitive agreement and TSX Venture Exchange approval.

The founder and current majority shareholder is Piotr Żak, son of one of the richest Poles, Zygmunt Solorz.