The Gaming Innovation Group (GiG) has maintained its corporate strategy for 2020, announcing that it plans to completely divest its entire B2C business to Stockholm’s Betsson AB counterpart by mid-April.
Last February, GiG approved a cash and share deal of € 31 million proposed by Betsson to divest its entire B2C business, including ownership of its flagship Rizk, Guts, Kaboo and Thrills assets.
According to the deal, GiG will use its divestment proceeds to repay its corporate bond of SEK 300 million (€ 27 million), thereby improving the balance sheets of the company.
GiG has decided to divest its entire B2C business as previously communicated to investors, concentrating future growth strategies on the advancement of its B2B services and technologies.
Further terms of the agreement stipulated that Betsson would commit to holding all GIG B2C brands on the GIG network for a minimum of 24 months, with Betsson charging network fees based on net gaming revenue (NGR) results.
GiG CEO Richard Brown has written previously on the transaction: “I am very excited about this transaction as it provides multiple upsides to GiG. 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.
“Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts”.