Gaming Innovation Group (GiG) sells the online casinos Kaboo, Rizk, Guts and Thrills to competitor Betsson.
The Swedish listed gambling giant Betsson is becoming a little more gigantic. The company takes over all business-to-consumer activities from the Gaming Innovation Group. This includes 4 online casinos: Kaboo, Rizk, Guts and Thrills.
Betsson immediately pays €31 million for the acquisition. In addition GiG will receive a “platform fee” depending on how well the casinos are doing in the coming 24 months. The companies expect the total value of the transaction to be around €50 million.
Betsson can increase its growth
Betsson is one of the market leaders in Europe in the field of online casinos and sports betting. Major Betsson brands are Betsafe, Supercasino, Casino Winner and NordicBet. The acquisition will allow Betsson to grow further in countries such as Croatia and Spain, where it does not yet have a strong market position.
GiG pays off debts
GiG continues as a business-to-business service provider and supplier for other gambling companies. For example, the company offers a ready-made platform for gambling sites, in which, for example, 30 different payment methods and more than 3000 games are integrated. The 4 online casinos sold will also continue to run on that platform for the time being. GiG uses the proceeds from the sale to pay off a bond loan that expires this year.
Richard Brown, CEO of GiG, is enthusiastic about the sale: “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.” He estimates that GiG as a pure B2B player is also an attractive prey for other gambling companies, so we may soon see a second acquisition.
Investors have their doubts about the deal
At the Stockholm Stock Exchange, the reactions to the takeover are rather divided.
At the opening of the trade, the Gaming Innovation Group share immediately exploded by more than 30 percent, but immediately thereafter the share collapsed just as fast. At the moment the share is worth 7.02 Swedish Krona, an increase of barely 3 percent compared to yesterday.
Investors are more enthusiastic about Betsson. The share is now almost 7% higher than yesterday, at 52.20 Swedish Krona.
