Gaming Innovation Group Inc. (GiG) has successfully concluded its acquisition of KaFe Rocks Ltd., a prominent player in iGaming affiliation.
This move solidifies GiG's media division, GiG Media, as a powerhouse in online casino affiliation and bolsters its presence in the lucrative North American market.
The completion of this strategic acquisition, as announced by GiG on November 7, 2023, positions GiG to drive substantial growth for KaFe Rocks assets.
Leveraging its proprietary media and marketing technology, GiG Media aims to capitalize on synergies between the entities, targeting a minimum revenue of MEUR 23 in 2024 for the acquired KaFe Rocks assets. The projected EBITDA margin exceeding 45% translates to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition.
Jonas Warrer, Group CEO of GiG, expressed satisfaction with the acquisition's completion, saying, "Our goal is to maintain our position as the leading casino affiliate in the industry and to expand further in the North American market. The inclusion of KaFe Rocks aligns perfectly with these objectives.
We’ve identified a thriving business led by an exceptionally skilled team. We eagerly anticipate integrating KaFe Rocks into the GiG family, unlocking additional business value to benefit our partners and investors."
The acquisition is expected to accelerate the diversification of GiG Media’s business, a crucial strategic goal for the company. This move aims to mitigate overall risk by expanding the customer base, websites, and markets to drive revenue growth in the future.
The transaction, valued at MEUR 35, involves a MEUR 15 upfront cash payment and MEUR 20 distributed in four semi-annual payments over 24 months.
Additionally, GiG may issue MEUR 2.5 in GiG shares to the sellers in Q1 2024, contingent upon specific operational cost savings targets being met by the end of 2023.
The number of shares issued will be based on a 30-day VWAP of the GiG share at the closing time. The consolidation of KaFe Rocks’ assets is effective as of today.
Commentaires