Gaming Innovation Group Inc. (GiG) signs a Share Purchase Agreement (SPA) with Betsson Group (Betsson) for the divestment of GiG’s B2C assets which include the operator brands Rizk, Guts, Kaboo and Thrills.
Through this agreement the brand will become a long term partner of GiG, generating revenues to GiG’s Platform Services.
On the day of closing, Betsson will pay €31 million, consisting of a €22.3 million cash payment for the acquisition, plus a prepaid platform fee of €8.7 million.
GiG will use the proceeds to repay the Company’s SEK300 million 2017 – 2020 bond.
Betsson commits to keep the brands operational on GiG’s platform for a minimum of 30 months.
For the first 24 months, Betsson will pay a premium platform fee based on NGR generated.
Based on the expected platform fees, the total value of the transaction is estimated at approximately €50 million.
Betsson, listed at Nasdaq Stockholm, is one of the most dominant European companies in online gambling with a long and strong track record of brand building, both organically and via acquisitions.
It offers online casino, proprietary sportsbook and other online games in a multi-brand strategy via gaming licences in twelve countries in Europe and Central Asia.
Pontus Lindwall, Chief Executive Officer of Betsson AB comments:
“We believe this deal offers a good opportunity for our company to consolidate, create synergies and apply our core B2C skills and marketing insights to scale these assets to their true potential.
The agreement with GiG further strengthens and expands Betsson’s outreach and growth potential for its proprietary sportsbook and payments platforms in the B2B market.
Betsson has significantly invested in the development of its sportsbook and now delivers a powerful offering.
A key strategy is to grow our sportsbook with B2B customers and I am excited to collaborate with GiG as a distribution channel.
We share the same passion for sports betting and providing a player environment which is unique, entertaining and safe”.
Richard Brown, Chief Executive Officer of GiG says:
“I am very excited about this transaction as it provides multiple upsides to GiG.
While putting the Company in a financially sustainable position, it gives us the ability to focus on where we see real long term shareholder value.
This transaction serves as a strategic focusing of the Company’s efforts towards the B2B segment.
Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts and our ability to sign new customers.
I am delighted to retain our brands Rizk, Guts, Kaboo and Thrills on the platform and in the process, adding Betsson as a partner as we share the same ambition of responsibility for all stakeholders, safe play for the end user, and an entertaining user experience.
I am certain that together with their speciality, focus and strong track record on driving B2C growth, it will be a fruitful partnership.
Additionally, the planned integration of Betsson’s sportsbook into our platform offering, not only provides cost saving synergies, it also allows us to offer one of the most well-renowned European sportsbooks to our current and future B2B partners.
We are excited to support Betsson’s growth of the brands we have built and now look forward to GiG next chapter as a specialist iGaming B2B provider“.