Gaming Innovation Group (GiG), one of the most powerful companies in the iGaming industry, connecting suppliers, operators and users, has signed a Share Purchase Agreement (SPA) for the divestment of its B2C assets to Betsson Group.
Betsson to Acquire Major GiG Brands (Rizk, Guts, Kaboo and Thrills)
The operator’s popular brands Guts Casino, Rizk Casino, Kaboo Casino and Thrills Casino are included in the agreement, and Betsson, with this agreement, will become a long-term partner with the chance to generate revenues on Gaming Innovation Group’s Platform Services.
GiG Divests Its B2C Vertical to Betsson
Gaming Innovation Group, as a part of its strategic plan, has decided to divest its B2C vertical, which includes its popular brands Kaboo, Rizk, Thrills and Guts, to Betsson Group. Betsson has agreed to pay €31 million, out of which €8.7 million as a prepaid platform fee and €22.4 million in cash payment for the acquisition. This money will be used by GiG for the repayment of the company’s 2017-2020 bond of SEK300 million.
Betsson, listed at Nasdaq Stockholm, has committed to keeping the brands' operation on GiG’s platform, for at least 30 months. Based on the NGR generated, Betsson will be paying a platform fee for the first 24 months. And, based on this fee, the full value of the total transaction will be approximately €50 million.
For those of you who are not familiar with it, Betsson is one of the most dominant European companies in online gambling, going strong in terms of brand building, both via acquisitions and organically. It is a company that offers a proprietary sportsbook, online casino and other online games via gaming licenses in 12 countries in Central Asia and Europe.
GiG has decided to divest its B2C vertical as a result of its strategic review, which started in November 2019 and led to the need for improving efficiency and reducing complexity. With the divestment, the company will enable full dedication to growing and driving its B2B businesses and will free up resources, securing sustainable and stable profit margins and earnings. Therefore, as part of the evolved strategic direction, GiG has decided to make its platform sportsbook agnostic. With the new strategy, it will partner with other sportsbook providers and offer, as always, only the best solutions to its customers.
Betsson’s sportsbook solution will, therefore, be integrated on GiG’s platform offering, and both companies will gain strategic advantage, since they will have the possibility, which is not conflicting with their own B2C brands, to sell their Respective B2B solutions. Considering GiG is one of the few B2B providers in multi-state jurisdictions in the U.S with omni-channel online gambling services, its ambitions are to gradually grow with new and existing long-term partners, the U.S-based ones included. Therefore, the company will seek joint ventures with partners to secure external long-term funding and true asset value of the sportsbook, in order to keep the strategic position for its own proprietary sportsbook.
Statements by the Two Parties
GiG’s Chief Executive Officer Richard Brown said he was very excited about the divestment as it would provide multiple advantages to the company. While putting it in a financially sustainable position, it gave the company the ability to focus on the future in terms of shareholder value. The deal served as a strategic direction with the focus on the company’s efforts in the B2B segment. Brown explained that due to increased complexity of the market and the conflicting priorities of the two segments, the synergy that existed between the B2C and B2B services had now lessened the potential offering in both areas and GiG’s ability to sign new customers.
However, Brown emphasized the fact that GiG brands would be retained on the platform and adding Betsson as a partner was the right move since they shared the same responsibility and ambition for all stakeholders, entertaining user experience and safe play for the end-user. He concluded his statement saying that he was certain that with Betsson’s strong track record on driving B2C growth, focus and specialities, the partnership would be fruitful, and would provide cost-saving synergies, allowing GiG to offer one of the most well-renowned sportsbooks to both current and potential B2B partners.
Betsson’s Chief Executive Officer Pontus Lindwall, on the other hand, commented that the deal was a good opportunity for the company to create synergies and apply its core B2C skills and marketing insights to scale the assets to their potential. Considering Betsson has significantly invested in the growth potential and development of its sportsbook and it delivered a powerful offering, its key strategy was to grow it with B2B customers, so Lindwall said he was really excited to collaborate with GiG as a distribution channel since the agreement will further expand and strengthen Betsson’s outreach for its proprietary sportsbook and the payment platforms in the B2B market.
Betsson to Acquire Major GiG Brands (Rizk, Guts, Kaboo and Thrills)
The operator’s popular brands Guts Casino, Rizk Casino, Kaboo Casino and Thrills Casino are included in the agreement, and Betsson, with this agreement, will become a long-term partner with the chance to generate revenues on Gaming Innovation Group’s Platform Services.
GiG Divests Its B2C Vertical to Betsson
Gaming Innovation Group, as a part of its strategic plan, has decided to divest its B2C vertical, which includes its popular brands Kaboo, Rizk, Thrills and Guts, to Betsson Group. Betsson has agreed to pay €31 million, out of which €8.7 million as a prepaid platform fee and €22.4 million in cash payment for the acquisition. This money will be used by GiG for the repayment of the company’s 2017-2020 bond of SEK300 million.
Betsson, listed at Nasdaq Stockholm, has committed to keeping the brands' operation on GiG’s platform, for at least 30 months. Based on the NGR generated, Betsson will be paying a platform fee for the first 24 months. And, based on this fee, the full value of the total transaction will be approximately €50 million.
For those of you who are not familiar with it, Betsson is one of the most dominant European companies in online gambling, going strong in terms of brand building, both via acquisitions and organically. It is a company that offers a proprietary sportsbook, online casino and other online games via gaming licenses in 12 countries in Central Asia and Europe.
GiG has decided to divest its B2C vertical as a result of its strategic review, which started in November 2019 and led to the need for improving efficiency and reducing complexity. With the divestment, the company will enable full dedication to growing and driving its B2B businesses and will free up resources, securing sustainable and stable profit margins and earnings. Therefore, as part of the evolved strategic direction, GiG has decided to make its platform sportsbook agnostic. With the new strategy, it will partner with other sportsbook providers and offer, as always, only the best solutions to its customers.
Betsson’s sportsbook solution will, therefore, be integrated on GiG’s platform offering, and both companies will gain strategic advantage, since they will have the possibility, which is not conflicting with their own B2C brands, to sell their Respective B2B solutions. Considering GiG is one of the few B2B providers in multi-state jurisdictions in the U.S with omni-channel online gambling services, its ambitions are to gradually grow with new and existing long-term partners, the U.S-based ones included. Therefore, the company will seek joint ventures with partners to secure external long-term funding and true asset value of the sportsbook, in order to keep the strategic position for its own proprietary sportsbook.
Statements by the Two Parties
GiG’s Chief Executive Officer Richard Brown said he was very excited about the divestment as it would provide multiple advantages to the company. While putting it in a financially sustainable position, it gave the company the ability to focus on the future in terms of shareholder value. The deal served as a strategic direction with the focus on the company’s efforts in the B2B segment. Brown explained that due to increased complexity of the market and the conflicting priorities of the two segments, the synergy that existed between the B2C and B2B services had now lessened the potential offering in both areas and GiG’s ability to sign new customers.
However, Brown emphasized the fact that GiG brands would be retained on the platform and adding Betsson as a partner was the right move since they shared the same responsibility and ambition for all stakeholders, entertaining user experience and safe play for the end-user. He concluded his statement saying that he was certain that with Betsson’s strong track record on driving B2C growth, focus and specialities, the partnership would be fruitful, and would provide cost-saving synergies, allowing GiG to offer one of the most well-renowned sportsbooks to both current and potential B2B partners.
Betsson’s Chief Executive Officer Pontus Lindwall, on the other hand, commented that the deal was a good opportunity for the company to create synergies and apply its core B2C skills and marketing insights to scale the assets to their potential. Considering Betsson has significantly invested in the growth potential and development of its sportsbook and it delivered a powerful offering, its key strategy was to grow it with B2B customers, so Lindwall said he was really excited to collaborate with GiG as a distribution channel since the agreement will further expand and strengthen Betsson’s outreach for its proprietary sportsbook and the payment platforms in the B2B market.
