Taking on numerous assets
Gaming Innovation Group (GiG) is acquiring AskGamblers in a deal worth €45m ($48m). GiG announced the move to buy the online gambling community platform from Catena Media Plc on Thursday. The company – and its GiG Media division, specifically – will also take over the assets of the NewCasinos and JohnSlots comparison websites, as well as some additional smaller European platforms.
current shareholders have already agreed upon the revolving credit facility and share issue.
GiG will pay €20m ($21m) in cash up front, with €10m ($11m) to come a year after closing and another €15m ($16m) two years after the deal closes. A combination of existing cash reserves, a share issue, and a revolving credit facility will help GiG fund the transaction. Current shareholders have already agreed upon the revolving credit facility and share issue.
Cementing its position in the affiliate space
Talking about the AskGamblers acquisition, GiG Media managing director Jonas Warrer said: “We want to be the leading casino affiliate in the industry, and this acquisition cements our position.”
According to the transaction statement, the assets that GiG is acquiring in the deal had revenue of €13m ($14m) for the first nine months of this year, with EBITDA of €8.4m ($9m). GiG is optimistic about significantly increasing the EBITDA margin going forward.
Both parties achieving key aims
GiG CEO Richard Brown believes that the AskGamblers acquisition will help fuel the company’s global expansion and to continue a strong path of evolution. This is just the latest in a string of recent moves by GiG. Already this month, GiG signed a new deal with StarCasino in Spain and entered a strategic commercial partnership with News UK.
Catena has recently focused on expanding in the North American market. CEO Michael Daly believes that the takeover by GiG marks a major step in Catena’s goal of growing in the Americas. The company initially acquired AskGamblers back in April 2016 for €15m ($16m).