The Penthouse, Triq Manwel Dimech, Sliema
[email protected]
+356 7950 1630
Shop Cart Checkout

GiG’s Acquisition of KaFe Rocks

GiG's Acquisition of KaFe Rocks
by
December 21, 2023
in Finance News, iGaming News
249

Gaming Innovation Group Inc. (GiG) proudly announces the successful completion of its acquisition of KaFe Rocks Ltd., a prominent affiliate leader in the iGaming industry. This strategic maneuver positions GiG’s media division, GiG Media, as a dominant force in online casino affiliation, solidifying its presence in the thriving North American market. The acquisition builds on the success of GiG’s previous venture with AskGamblers, propelling GiG Media towards substantial growth by leveraging proprietary media and marketing technology.

Unveiling the Strategic Move

A Paradigm Shift in Affiliation

GiG’s foray into the acquisition of KaFe Rocks marks a paradigm shift in the world of iGaming affiliation. With a keen eye on expanding its influence in the North American market, GiG recognizes the immense potential in teaming up with KaFe Rocks, a company renowned for its leadership in the affiliate space.

GiG Media Takes the Lead

As a result of this strategic move, GiG Media is now poised to lead the way in online casino affiliation. Leveraging KaFe Rocks’ assets, GiG Media aims to achieve remarkable revenue growth and strengthen its position as an industry leader.

The Financial Landscape

A Calculated Investment

The transaction, valued at MEUR 35, reflects a well-thought-out investment strategy by GiG. Comprising a MEUR 15 upfront cash payment and MEUR 20 distributed in four semi-annual payments over 24 months, the acquisition demonstrates GiG’s commitment to long-term success.

Potential for Share Issuance

Adding an intriguing element to the deal, 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 year-end 2023. The number of shares to be issued will be based on a 30-day VWAP of the GiG share at the time of closing, showcasing GiG’s innovative approach to business deals.

The Visionaries’ Perspective

Jonas Warrer’s Satisfaction

Jonas Warrer, Group CEO of GiG, expresses his satisfaction with the completion of the acquisition. Warrer states, “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.”

Unlocking Business Value

Warrer is enthusiastic about integrating KaFe Rocks into the GiG family, foreseeing additional business value that will benefit partners and investors alike. This integration promises to unlock new opportunities and pave the way for sustained growth in the dynamic iGaming landscape.

Synergies Unveiled

Building on AskGamblers’ Success

GiG’s prior success with the AskGamblers acquisition sets the stage for similar triumphs with KaFe Rocks. The synergies between the two entities are expected to result in a minimum revenue of MEUR 23 in 2024 for the acquired KaFe Rocks assets, with an EBITDA margin exceeding 45%. This translates to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition, showcasing the potential for exponential growth.

Diversification as a Strategic Goal

The acquisition accelerates the diversification of GiG Media’s business, a key strategic goal for the company. By expanding its customer base, websites, and market reach, GiG aims to mitigate overall risk and establish a robust foundation for sustained revenue growth.

A Look into Gaming Innovation Group

Pioneering iGaming Technology

Founded in 2012, Gaming Innovation Group is a leading iGaming technology company that provides solutions, products, and services to iGaming operators. The company’s vision is to be the industry-leading platform, sportsbook, and media provider, delivering world-class solutions to its iGaming partners and their customers.

Mission for Growth and Profitability

GiG’s mission is clear — to drive sustainable growth and profitability for its partners through product innovation, scalable technology, and quality of service. Operating out of Malta, GiG is dual-listed on the Oslo Stock Exchange under the GIG ticker symbol and on Nasdaq Stockholm under the GIGSEK.

The Road Ahead

Toward a Thriving Future

As the dust settles on the acquisition of KaFe Rocks, Gaming Innovation Group looks ahead to a future filled with possibilities. The synergy between GiG and KaFe Rocks sets the stage for a thriving partnership that is bound to reshape the landscape of iGaming affiliation.

Commitment to Excellence

With a commitment to excellence and a strategic vision that encompasses both short-term gains and long-term sustainability, GiG is well-positioned to navigate the ever-evolving world of iGaming. The acquisition of KaFe Rocks is not just a business deal; it’s a strategic move that reflects GiG’s dedication to staying at the forefront of industry trends.

Conclusion

In conclusion, Gaming Innovation Group’s acquisition of KaFe Rocks is a testament to its commitment to growth, innovation, and market leadership. The strategic alignment between GiG and KaFe Rocks opens up new avenues for success, and the combined expertise of these industry giants is set to redefine the iGaming affiliation landscape.

FAQs

What is the significance of GiG’s acquisition of KaFe Rocks?
GiG’s acquisition of KaFe Rocks marks a strategic move to strengthen its position in the iGaming affiliation space, particularly in the lucrative North American market.

How does this acquisition benefit GiG Media?
The acquisition positions GiG Media as a dominant force in online casino affiliation, leveraging KaFe Rocks’ assets for substantial growth and revenue generation.

What financial details are involved in the transaction?
The transaction is valued at MEUR 35, comprising a MEUR 15 upfront cash payment and MEUR 20 distributed over 24 months. There is also the potential issuance of MEUR 2.5 in GiG shares.

What are the expected synergies between GiG and KaFe Rocks?
The synergies are anticipated to result in a minimum revenue of MEUR 23 in 2024 for the acquired KaFe Rocks assets, with an EBITDA margin exceeding 45%.

How does GiG plan to diversify its business through this acquisition?
The acquisition accelerates GiG Media’s business diversification by expanding its customer base, websites, and market reach, mitigating overall risk.

What is the strategic vision of Gaming Innovation Group?
GiG’s vision is to be the industry-leading platform, sportsbook, and media provider, delivering world-class solutions to its iGaming partners and their customers.

What is the mission of Gaming Innovation Group?
GiG’s mission is to drive sustainable growth and profitability for its partners through product innovation, scalable technology, and quality of service.

Where is Gaming Innovation Group headquartered?
Gaming Innovation Group operates out of Malta and is dual-listed on the Oslo Stock Exchange under the GIG ticker symbol and on Nasdaq Stockholm under the GIGSEK.

What role does Jonas Warrer play in the acquisition?
Jonas Warrer, Group CEO of GiG, expresses satisfaction with the completion of the acquisition and emphasizes the company’s goal to maintain its position as the leading casino affiliate.

How does GiG plan to navigate the iGaming landscape post-acquisition?
With a commitment to excellence and a strategic vision, GiG is well-positioned to navigate the ever-evolving world of iGaming, reshaping the landscape of affiliation.

Share

As a Web- and Graphics Designer, I possess extensive knowledge and expertise in WordPress theme customization. My skillset includes developing responsive web designs utilizing HTML, CSS, and Bootstrap, as well as creating E-commerce Website Solutions. I am also proficient in creating visually appealing Graphics. In addition, I specialize in optimizing website SEO through on-page and off-page optimization techniques.

Recommended Posts