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Betsson to acquire GiG’s B2C vertical
Posted on Friday, 14 February 2020 12:43
Betsson is acquiring Gaming Innovation Group's (GiG’s) business-to-consumer (B2C) vertical, including the brands Guts, Kaboo, Rizk and Thrills, to consolidate its position in key markets and have more opportunities for growth in Spain and Croatia.

The Nasdaq Stockholm-listed online gaming holding company will pay EUR 31.00 million, comprising EUR 22.30 million in cash and a prepaid platform fee of EUR 8.70 million.

It noted that as part of the acquisition it has entered into a service agreement with a minimum of two and a half years to host the acquired brands on the GiG B2B platform.

Betsson claims to be one of the most dominant European companies in internet gambling, with a long track record of brand building, both organically and via acquisitions.

The group offers online casino, proprietary sportsbook and other online games in a multi-brand strategy via licences in 12 countries in Europe and central Asia.

GiG’s sale is a result of a review launched in November 2019 to reduce group complexity and improve efficiency, and the divestiture should free up resources to leave it to focus on its business-to-business segment.

The company will transfer all the assets, business activities, operations, front-end and middleware technology and gaming licences attributable to the B2C operations for providing online gambling through the Guts, Kaboo, Rizk and Thrills brands to Zecure Gaming.

Betsson will then acquire this entity in a deal where the cash portion of EUR 22.30 million corresponds to 2.9x earnings before interest and tax of EUR 7.60 million in 2019.

The B2C vertical generated revenue of EUR 77.00 million over the 12 months.

GiG said it would use proceeds to repay its 2017-2020 bond and noted that following the divestment full year 2020 turnover is expected to be in the range of EUR 70.00 million to EUR 75.00 million.

The group anticipates 2020 earnings before interest, tax, depreciation and amortisation of EUR 14.00 million to EUR 17.00 million.

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