The Stockholm-listed Gaming Innovation Group (GiG) has announced issuing a market filing Friday morning that it will sell its entire B2C business to Betsson AB.
The company confirmed that it has agreed terms on a € 31 million share purchase agreement, consisting of a € 22.3 million cash payment for the properties in addition to an additional € 8.7 million prepaid network charge.
The deal sees Betsson takeover control of the entire portfolio of GiG’s B2C including the Rizk, Guts, Kaboo and Thrills flagship domains.
Deal terms stipulate that Betsson will commit to holding all GIG B2C products on GIG platforms for a minimum of 24 months, with Betsson charging performance-based platform fees based on net gaming revenue (NGR).
The total amount of the deal is estimated at around € 50 million, based on the planned platform fees. Betsson Governance defines the deal as key to the development of the new B2B sportsbook product for the company.
Pontus Lindwall, CEO of Betsson AB, commented on the transaction: “We believe this deal offers a good opportunity for Betsson to consolidate, create synergies and apply our core B2C skills and marketing insights to scale these assets to their true potential. The agreement with GiG further strengthens and expands Betsson’s outreach and growth potential for its proprietary sportsbook and payments platforms in the B2B market.”
In its transaction notice, GIG Governance confirms that it has decided on the sale of its B2C unit as part of the strategic review of the company, in which GiG will divest its brand portfolio to concentrate on B2B growth.
GiG has announced that its future platform requirements will be’ sportsbook agnostic’–a decision that will enable the incorporation of Betsson’s sportsbook solution into GiG’s platform offering.
GiG CEO Richard Brown stated: “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 and our ability to sign new customers.
“I am delighted to retain our brands on the platform and in the process, adding Betsson as a partner as we share the same ambition of responsibility for all stakeholders, safe play for the end-user, and entertaining user experience. I am certain that together with their speciality, focus and strong track record on driving B2C growth, it will be a fruitful partnership.
“Additionally, the planned integration of Betsson’s sportsbook into our platform offering, not only provides cost-saving synergies, it also allows us to offer one of the most well-renowned European sportsbooks to our current and future B2B partners. We are excited to support Betsson’s growth of the brands we have built and now look forward to GiG next chapter as a specialist iGaming B2B provider.”
Betsson acquires Gaming Innovation Group’s (@GIG_online) business to consumer (BC2) operations. GiG currently operates the brands Guts, Kaboo , Rizk, and Thrills which are now acquired by Betsson. Read more: https://t.co/FZLvTWmc8k pic.twitter.com/aIIMRngc3j
— Betsson AB (@BetssonAB) February 14, 2020