The deal will total €31 million
In a surprise move, Betsson have taken the final step towards acquiring Gaming Innovation Group’s (GiG) B2C operations – including the brands Guts, Kaboo, Rizk and Thrills, and also the GiG subsidiary Zecure Gaming Limited.
Through the agreement, Betsson will become a long-term partner of GiG and generate revenue on GiG’s Platform services, with Betsson paying €31 million on the day of closing.
GiG stated in a press release that 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. They further noted that they will use the proceeds to repay the Company’s SEK300 million 2017-2020 bond.
Pontus Lindwall, President/CEO Betsson.‘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,” Pontus Lindwall, CEO of Betsson AB and Group President explained, going on to say that “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’.
“I am delighted to retain our brands 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.”
Richard Brown CEO of GiG added that he is very excited about this transaction “as it provides multiple upsides to GiG”.
Richard Brown, CEO 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 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.”
The deal is expected to be completed in mid-April 2020.
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For those planning to attend SiGMA Manila, AIBC Manila and ICE Asia at SMX on June 8-9th, this is the buzzing business environment to be expected:
