Gaming Innovation Group (GiG) said it agreed to buy websites, including Askgamblers.com, from Catena Media for EU45 million ($47.7 million) to diversify its media business.
GiG said the websites also include Johnslots.com, Newcasinos.com and some other smaller domains. The group said EU20 million will be paid in cash on closing, with EU10 million 12 months afterwards and the balance 24 months after completion. The deal is scheduled to close in the first quarter of next year.
According to GiG, the acquired websites generated revenue of EU12.9 million in the first nine months of this year, with an EBITDA of 8.4 million. The company expects an EBITDA margin of between 60 and 70 percent from the assets going forward.
“After three years of consolidating and expanding the GiG Media business – realising strong annual organic growth – the time was ripe to act when this acquisition opportunity emerged,” said Morten Hillestad, director of business development at GiG Media. “GiG Media has developed world class marketing technology and operational capabilities over the preceding years, and we feel that bringing the AskGamblers brand into the company structure will provide multiple opportunities for it to flourish.”
Focusing on Americas
Catena Media CEO Michael Daly added that for his company, the accord was a major step to focus the business on online sports betting and casino affiliation in regulated markets in the Americas.
“I am confident that in GiG, we have found a buyer that will provide a strong environment for AskGamblers and the other brands and their talented people to develop and grow.”
GiG said it will finance the first tranche through its own cash, a revolving credit facility and a share issue. Existing investors have pledged to buy shares in the offer and the facility, which will ensure sufficient funds to complete the transaction.
The company said the acquired assets are strong in markets which are currently non-core for GiG, expanding its geographic reach. Going forward, GiG sees the opportunity for operation synergies through shared technologies and other key functions.