2022-05-24

GiG Targets ‘High Quality’ Sportsbook Expansion through €50.8m Sportnco Acquisition

GiG Targets ‘High Quality’ Sportsbook Expansion by means of €50.8m Sportnco Acquisition

Cash-plus-shares deal

iGaming technologies giant Gaming Innovation Group (GiG) has acquired sportsbook platform and media supplier Sportnco Gaming SAS in a €50.8m ($57.4m) cash-plus-shares deal.

The Malta-headquartered B2B supplier will acquire Sportnco for a total consideration of €27.3m ($30.8m) in cash and €23.5m ($26.5m) in new GiG equity. The deal implies Sportnco’s enterprise value at €70m ($79.1m) which contains around €19.2m ($21.7m) in debt that GiG will assume.

GiG inked the deal with the Toulouse-based sports betting and iGaming firm December 22, sharing the news via Twitter the same day:

Linked to the Sportnco deal was GiG’s announcement that it will problem €25m ($28m) in shares to 1 of its platform consumers, SkyCity Entertainment Group Limited. The capital from New Zealand-based SkyCity will partially finance the money payment to Sportnco. According to a GiG news release, SkyCity will hold 11.four% of the shares in GiG, while Sportnco’s shareholders will hold 10.7% following completion of the takeover, which is anticipated in February.

Hugely lucrative sportsbook

Adding Sportnco to its portfolio will give GiG a very profitable sportsbook and position it as a full service platform organization with robust profitability. Commercial, operational, and technological synergies aside, GiG said the buyout will also “enable expense savings and accelerated growth.”

Combined, the pair will operate in 25 legal markets at the moment holding around 55 consumers, like sturdy nearby players in the US, European, and Latin America markets.

GiG CEO Richard Brown expressed his firm’s excitement at the Sportnco acquisition via `the official news release. The CEO stated it speeds up GiG’s long game vision of becoming “a worldwide leader in the provision of platform, sportsbook and media solutions to the iGaming market.”

Brown also talked up Sportnco’s “hugely complimentary regulatory profile and higher-high quality sportsbook,” adding that the buyout accelerates the short- and extended-term addressable markets of each firms.

allow us to cover European and American regulated markets for all our current and future clients”

CEO and founder of Sportnco Hervé Schlosser expressed his excitement over the combined sales possible the acquisition brings. “Sportnco sportsbook will add strength and attractiveness to the offer of GIG and our mutual PAM [player account management] options will enable us to cover European and American regulated markets for all our current and future customers.”

Win-win scenarios

The linking of SkyCity to the Sportnco deal delivers a win-win scenario for all parties. SkyCity’s CEO Michael Ahearne mentioned the move was an expansion of a strategic partnership with GiG that began in 2019 with the launch of his brand’s online casino. Ahern stated the partnership enabled SkyCity to access a “high-growth gaming category [and] pursue an omnichannel technique.” The CEO also pointed out how the GiG and Sportnco combination will access more than 20 jurisdictions, “including development markets such as the US, Canada and Latin America.”

SkyCity operates casino resorts in the New Zealand cities of Auckland, Hamilton and Queenstown. Speaking last October about how a recent lockdown cost his firm more than NZ$30m (US$19.7m) in lost revenue, group CEO Graham Stephens mentioned he expected the group’s on the internet casino operation to turn out to be a much more considerable revenue earner.

Brown also commented on the inherent synergies and mutual techniques at play amongst the three brands, specifically in the ongoing digitalization of gambling. Brown said GiG would benefit from decades of SkyCity’s experience in the retail space, although the latter would get bolstered by GiG’s very first-hand digital know-how, with both enjoying “new opportunities” by means of the Sportnco acquisition.