ESE Entertainment Enters Strategic Partnership With BlackPines, To Sell 70% Stake In GameAddik To BlackPines For About $9 Million
Detroit, Michigan
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August 22, 2023 09:25 AM Eastern Daylight Time
By Faith Ashmore, Benzinga
ESE Entertainment (OTCQX: ENTEF) (TSXV: ESE) is a leading global technology company that operates primarily in the gaming and esports industry. In the gaming industry, ESE provides crucial technology solutions to video game developers, publishers and brands, and the company is actively involved in fan engagement services globally. It also operates its own e-commerce channels. However, the company is most well known for its involvement in the esports industry.
A prominent player in the global gaming and esports industry, ESE recently announced an all-cash transaction – the company has reached an agreement with an affiliate of BlackPines Capital Partners Ltd. to sell 70% of the shares of its subsidiary, GameAddik. The remaining 30% of GameAddik's shares will still be owned by ESE.
As part of the deal, BlackPines will pay ESE a total of $9,100,000 in cash for the purchase, with some adjustments to the final amount. Additionally, 15% of the payment will be held back initially to cover any potential indemnification obligations from ESE. This holdback will be released to ESE in two portions, with one portion after 6 months and the other after 12 months, depending on any outstanding claims.
"We couldn't be more excited about our investment in GameAddik and partnership with ESE Entertainment," said Darren Huston, CEO & Founder of BlackPines. "We have an ambitious plan to invest in and grow the business, and to help an already outstanding team deliver industry-best marketing ROIs to a growing roster of PC game industry customers.”
Darren Huston has a strong background and expertise in the technology and travel industries, he has consistently demonstrated exceptional leadership and strategic vision. One of the most notable successes in Darren Huston's career was his tenure as the CEO of Priceline Group, one of the world's largest online travel companies. Under his leadership, the company experienced significant growth and expansion, solidifying its position as a global leader in the travel industry. Through strategic acquisitions and innovative business strategies, Huston successfully steered Priceline Group towards sustained profitability and market dominance.
Another remarkable highlight of Darren Huston's successful career was his role as the CEO of Booking.com, a subsidiary of Priceline Group. During his tenure, he played a pivotal role in transforming Booking.com into one of the world's leading online hotel reservation platforms. Under his guidance, the company focused on enhancing the user experience, and the platform witnessed tremendous growth, capturing a significant share of the online hotel booking market. His involvement in the ESE transaction is notable for the company’s positive outlook.
Konrad Wasiela, CEO of ESE shared his thoughts on the transaction, sharing, "This transaction and partnership with BlackPines marks a significant milestone in ESE's growth trajectory. We're aligning our growth path with a proven technology executive and entrepreneur with world-class exits. We're confident that this partnership will propel GameAddik, and ESE as a whole, into a period of growth. The synergy will empower GameAddik to harness its full potential, further enabling ESE to deliver premier services to the gaming community. As we retain a strategic stake in GameAddik, we'll continue to be a part of its journey, ensuring this partnership fuels mutual growth and success in our industry."
This agreement marks an important step for ESE as it continues to strategically navigate its business operations and partnerships in the gaming industry to drive continued growth.
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