Gaming Innovation Group (GiG) has purchased the Sportbook platform and the media supplier Sportnco In an agreement that includes Cash shares with a total value of $ 50.8 million.
The B2B supplier, headquartered in Malta, will pay a combination of $ 27.3 million in Cash and $ 23.5 million in new shares issued in the GIG company.
In addition, GIG has agreed to take over Sportnco's existing debt of $ 19.2 million as part of the agreement, which includes an earn-out component of $ 23 million, based on whether Sportnco achieves performance-related goals in 2022 and 2023.
In a press release from GIG, the agreement is confirmed with the following statement: "Combined, GIG and Sportnco will be licensed in 25 markets, currently with around 55 customers, as Sportnco's geographical presence is very complementary to GIG's current offer."
"Sportncos is a strong sportsbook product, and the acquisition is expected to create attractive commercial, operational and technological synergies, and enable cost savings and accelerated growth."
GIG has high expectations for the acquisition of Sportnco
Sportnco is expected to generate 2021 revenues of over 9 million euros, with expected operating revenues of 5 million euros.
GIG chief Richard Brown welcomed Sportnco to Gigs B2B-Arsenal, suggesting that the transaction would "accelerate" the company's vision of becoming a global B2B game supplier business.
"The enormous complementary regulatory profile and high-quality sportsbook that Sportnco has, quickly expands both companies' short and long-term addressable markets," Brown explained.
«Herve [Sportnco's CEO and founder Herger Schlosser] and the Sportnco team have built a fantastic company over the past decade, created a great product and works in a number of competitively regulated markets and have documented success.
"We are very pleased to combine the two companies' offerings and accelerate our growth potential," Brown added.
GIG has also entered into an agreement with the SkyCity Entertainment Group to finance the deal
In an affiliated transaction, GIG has entered into an agreement with the New Zealand-based Gambling operator SkyCity Entertainment Group, where Skrycity will invest $ 25 million in GIG through a directed issue at a price of NOK 18.00 per share.
These investment money will be used by GIG to finance the cash part of the Sportnco agreement.
With reference to the agreement with SkyCity, Brown said he was "happy" to launch the land -based business as a shareholder.
“Both companies' views and focus on the digitalisation of gambling in constant development is expected to enable strategic earnings, with gigs that benefit from decades of retail experience to fine -tune our offering and SkyCity benefits from first -hand digital experience that Gig has, and new opportunities arise With Sportnco, "Brown added.
Source: EGR Global