Gaming Innovation Group has signed a share purchase agreement to acquire the igaming company Sportnco Gaming.
Sportnco is one of the leading platform providers of turnkey betting and gaming solutions for operators in regulated markets through its in-house developed sportsbook and PAM.
The combined company will enhance and strengthen GiG’s position as one of the industry leading platforms and media providers with innovative and proprietary products and creating one of the largest and fastest growing providers in regulated igaming with an unparalleled geographical footprint.
Combined, GiG and Sportnco will be licensed in 25 markets, currently with around 55 clients, as Sportnco’s geographical presence is highly complementary to GiG’s current offering.
Sportnco’s tier-one sportsbook product is strong and the acquisition is expected to create attractive commercial, operational and technological synergies, as well as enable cost savings and accelerated growth.
Sportnco is estimating revenues for 2021 in excess of €9m with an EBITDA around €5m.
The initial consideration is €50.8m, whereof €23.5m will be paid in new shares in GiG and €27.3m in cash. In addition, GiG will assume existing debt in Sportnco of €19.2m and there will be an earn-out of up to €23m based on the Sportnco performance in 2022 and 2023.
GiG has also entered into an agreement with SkyCity Entertainment Group whereby SkyCity will, subject to final completion of the acquisition, invest €25m in GiG through a directed share issue at NOK18 per share that will finance the main part of the cash consideration.
