Betsson’s Acquisition of GiG’s B2C Assets to be Complete Mid-April

Betsson Group has confirmed that their acquisition of Gaming Innovation Group (GiG) will go through by mid-April, as they have secured the approval from anti-trust regulators to proceed with the planned purchase.

The company will seize GiG’s B2C assets, as was agreed in February, when the latter agreed to sell them to Betsson. This includes the selling of Rizk, Guts, Kaboo and Thrills. The deal’s worth is $35.9 million.

Shifting Focus to B2B

Both companies had required approval from anti-trust regulatory bodies…

…to make this deal happen and with this secured, the deal is all but closed. Betsson will play EUR 33 million on closing, including the EUR 2 million for the cash deposit to secure Spanish casino license.

GiG’s part of the proceeds will be used to repay the bond for the period between 2017 and 2020 which will strengthen the balance sheet and reduce the financial leverage.

Groove has confirmed that it would free up resources and enable itself to focus on driving B2B business, after sustainable earnings and profit margins have been secured.

Their statement said as follows:

“GiG sees a large and sustainable addressable market for its platform business as the regulation of the igaming industry continues and is well positioned with the omni-channel platform offering to capitalise on the continued digital transformation of the worldwide gambling market.”

GiG’s brands operate under the licenses of Malta, UK, Sweden and Schleswig-Holstein and some of the assets Betsson will acquire include business activities, operations, front-end and middleware technology and gaming licenses for B2C operations.

Betsson AB’s CEO, Pontus Lindwall, has said:

“We believe this deal offers a good opportunity for Betsson to consolidate, at good value, where we can create synergies and apply our core B2C skills and marketing insights to scale these assets to their true potential.”

Through this acquisition, Betsson will continue to consolidate its position in key markets and open up for more opportunities with different brands in Spain and Croatia. Further, it intends to integrate its own proprietary sportsbook and payment platforms with the GiG platform.

This will enable it to offer its technologies to potential B2B clients of Groove. Part of the acquired business is conducted in markets where it already operates which allows for release of synergies.

Source:

“Betsson Buys GiG's B2C Business”, betssongroup.com, April 9, 2020.