GiG divests B2C arm to Betsson AB for €31 million
Issuing a market filing this morning, the governance of Stockholm-listed Gaming Innovation Group (GiG) has disclosed that it will divest its entire B2C unit to Betsson AB.
GiG governance confirms that it has agreed terms on a share purchase agreement worth €31 million, consisting of a €22.3 million cash payment for the assets on top of a further €8.7 million prepaid platform fee.
The deal sees Betsson takeover management of GiG entire B2C portfolio including flagship domains Rizk, Guts, Kaboo and Thrills.
Deal terms stipulate that Betsson must commit to maintaining all GIG B2C brands operational on the GIG platfroms for a minimum term of 24-months, with Betsson paying platform fees based on NGR performance.
Based on the expected platform fees, the total value of the transaction is estimated at approximately €50 million. Betsson governance describes the transaction as fundamental to developing the firm’s new B2B sportsbook offering.
Confirming the transaction, Pontus Lindwall, Chief Executive Officer of Betsson AB comments: “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 note, GIG governance reveals that the sale of its B2C unit was agreed as part of the firm’s strategic review, in which GiG would divest its brand portfolio focusing on B2B growth.
Operating as an industry technology systems provider, GiG governance reveals that its future platform provisions will be ‘sportsbook agnostic, a decision which will allow Betsson’s sportsbook solution to be integrated within GiG’s platform-offering.
Richard Brown, Chief Executive Officer of GiG says: “ 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”.
Source: SBC News
