ESE Entertainment inks letter of intent to buy esports company Digital Motorsports

ESE Entertainment Inc (CVE:ESE) (OTCQB:ENTEF) announced that it has signed a letter of intent (LOI) to acquire Digital Motorsports, an Irish company that provides infrastructure, technology, and support for the esports industry. The company said Digital Motorsports is one of the leading simulation racing companies worldwide, with demonstrated profitability and double-digit, year-over-year revenue growth.  “Our shared vision of becoming the number one global brand for esports in the motorsports industry was paramount in coming together to sign the LOI. We are excited to work closely with Digital Motorsports to build on their existing business, focusing on increasing revenue and profit margins,” ESE Entertainment CEO Konrad Wasiela said in a statement. “Niall and his team at Digital Motorsports have been able to prove a profitable business model, with contracts with tier-1 customers across the globe, and they are just getting started,” Wasiela added. “The digital motorsport sector continues to grow around the world, and we are thrilled to have the opportunity to become a key part of that growth.” READ: ESE Entertainment teams up with Bitcoin Vault on new esports gaming show ESE noted that the proposed acquisition is intended to build on the company’s already strong position in the simulation racing market, bringing it one step closer to becoming one of the largest gaming and esports infrastructure companies in the world. Digital Motorsports has signed contracts with the FIA-accredited Motorsport Ireland to host all of the national esports events, contributing to the possibility of representing Ireland at official FIA Digital Motorsport Games and the Virtual Olympics. The company noted that the purchase price for Digital Motorsports will be confirmed following completion of further due diligence, but will be paid with a portion in cash and the balance in common shares of ESE at a deemed price of $1.48 per share, with the shares being released over three years from issuance. Included in the acquisition would be Digital Motorsports’ portfolio of intellectual property related to racing simulator solutions, components, and cloud-based racing services. ESE Entertainment is a Europe-based entertainment and technology company focused on gaming, particularly on esports, with ownership of multiple assets and world-class operators in the gaming and esports industries. The company’s capabilities include physical infrastructure, broadcasting, global distribution for gaming and esports-related content, advertising, sponsorship support, and a growing esports team franchise, K1CK Esports. Contact Sean at sean@proactiveinvestors.com