GiG to acquire platform provider Sportnco in €50m deal
The acquisition, which is expected to close in February 2022, consists of an initial consideration of €50.8m, made up of €27.3m in cash and €23.5m in new shares in GiG.
The main part of the cash consideration will be funded via an agreement between GiG and SkyCity Entertainment Group, under which SkyCity will invest €25m in GiG through a directed share issue at a price of NOK18.00 per share, subject to final completion of the acquisition.
In addition, GiG will assume existing debt in Sportnco of €19.2m, and there will be an earnout of €23.0m based on Sportnco’s performance in 2022 and 2023.
Sportnco is currently estimating revenues for 2021 in excess of €9m, GiG said, with EBITDA of around €5m.
GiG said the combined business would enhance and strengthen its position as one of the iGaming industry’s leading platform and media providers.When combined, the business will be licensed in 25 markets, with around 55 clients, as GiG said Sportnco’s geographical presence is highly complementary to its current offering.
GiG expects the acquisition to create attractive commercial, operational and technological synergies while delivering cost savings and accelerated growth.
“The transaction accelerates our long-term vision to become a global leader in the provision of platform, sportsbook and media services to the iGaming industry,” said GiG CEO, Richard Brown.“The hugely complimentary regulatory profile and high-quality sportsbook that Sportnco have, rapidly expands both companies’ short- and long-term addressable market.
“Hervé and the team at Sportnco have built a fantastic company over the last decade, creating a great product and working in a range of competitive regulated markets and have a proven track record of success. We are very excited to combine the two companies’ offerings and accelerate our growth potential.”
Hervé Schlosser, CEO and founder of Sportnco, added: “GiG and Sportnco really have the perfect match both in terms of product and geographical areas of business but also as they share the same corporate values.
“I am excited by the sales potential of our combined offerings. Sportnco sportsbook will add strength and attractiveness to the offer of GIG and our mutual PAM solutions will enable us to cover European and American regulated markets for all our existing and future clients.”