GiG B2C Business acquired by Betsson 

14th February 2020

‘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 acquired Gaming Innovation Group's (GiG) business to consumer (B2C) operations, the company said in a statement.

GiG, listed on the Oslo and Stockholm Stock Exchanges, currently operates the brands Guts, Kaboo, Rizk and Thrills, which are now acquired by Betsson.

The brands operate under licenses held in Malta, UK, Sweden and Germany (Schleswig-Holstein).

Betsson is the largest gaming company in Malta while GiG is also based on the island.

It has acquired a GiG subsidiary, Zecure Gaming Limited, where the assets, business activities, operations, front-end and middleware technology and gaming licenses attributable to the B2C operations for providing online gambling through the acquired brands will be transferred.

Betsson intends to integrate its own proprietary sportsbook and payment platforms with the GiG platform, it said in a company statement.

"Betsson's ambition is to outgrow the market in the long term, organically and through acquisitions. This acquisition confirms that Betsson is a driver of the consolidation of the market. We believe this deal offers a good opportunity for Betsson to consolidate, at good value, where we can 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. As one of the largest European operators, Betsson is well positioned to continue building on its strategic position" says Pontus Lindwall, CEO of Betsson AB and Group President.

The revenue of the acquired business in 2019 was EUR 77 million, and EBIT was EUR 7.6 million.

The initial consideration of the acquisition is EUR 22.3 million, which corresponds to 2.9 times EBIT in 2019. As part of the acquisition, Betsson has entered into a platform service agreement with GiG for a minimum of two and a half years to host the acquired brands on the GiG B2B platform.

Betsson will pay a fee based on revenues under the platform service agreement. During the first two years the platform fee will include a premium fee estimated to EUR 15 million (of which EUR 8.7 million will be pre-paid at completion). The combination of the initial consideration and the estimated premium fee constitutes the total purchase price for the acquired business.

Financing of the acquisition is done through Betsson's revolving credit facility, which gives an attractive financial flexibility to do deals of this sort.

The transaction is conditional upon customary regulatory approvals. Completion of the deal is expected in mid-April 2020.

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GiG B2C Business acquired by Betsson