STOCKHOLM, Feb. 14, 2020 /PRNewswire/ — Gaming Innovation Group Inc. (GiG) indicators a Share Buy Settlement (SPA) with Betsson Group (Betsson) for the divestment of GiG’s B2C property which embody the operator manufacturers Rizk, Guts, Kaboo and Thrills. Betsson will, via this settlement, grow to be a long run accomplice of GiG, producing revenues to GiG’s Platform Providers. On the day of closing, Betsson can pay €31 million, consisting of a €22.three million money fee for the acquisition, plus a pay as you go platform price of €8.7 million. GiG will use the proceeds to repay the Firm’s SEK300 million 2017 – 2020 bond.
Betsson commits to maintain the manufacturers operational on GiG’s platform for no less than 30 months. For the primary 24 months, Betsson can pay a premium platform price primarily based on NGR generated. Primarily based on the anticipated platform charges, the entire worth of the transaction is estimated at roughly €50 million.
Betsson, listed at Nasdaq Stockholm, is among the most dominant European firms in on-line playing with an extended and robust monitor document of brand name constructing, each organically and by way of acquisitions. It affords on-line on line casino, proprietary sportsbook and different on-line video games in a multi-brand technique by way of gaming licences in twelve international locations in Europe and Central Asia.
The sale of the B2C vertical is a results of GiG’s strategic overview, initiated in November 2019, resulting in an developed strategic route to scale back complexity and enhance effectivity. By divesting the B2C vertical, GiG will release assets, enabling full dedication on driving and rising its B2B enterprise, securing steady and sustainable earnings and revenue margins. GiG sees a big and sustainable addressable marketplace for its platform enterprise because the regulation of the iGaming trade continues and is effectively positioned with the omni-channel platform providing to capitalise on the continued digital transformation of the worldwide playing market.
GiG has, as a part of the strategic overview, taken a call to make its technical platform sportsbook agnostic, and accomplice with different sport guide suppliers to supply the most effective options to its clients. Betsson’s sportsbook answer is meant to be built-in on GiG’s platform-offering. Each GiG and Betsson will achieve strategic benefit in having the likelihood to promote their respective B2B options in an atmosphere with out battle of their very own B2C manufacturers.
With the intention to maintain the strategic place for its personal proprietary sportsbook, GiG will search joint ventures or different constellations with companions to launch the true asset worth of the sportsbook and to safe exterior long run funding. The ambition is to progressively develop with current and new long run companions, together with the quick rising US market. GiG is among the few B2B suppliers current with omni-channel on-line playing providers in multi-state jurisdictions within the US.
Pontus Lindwall, Chief Govt Officer of Betsson AB feedback: “We imagine this deal affords an excellent alternative for Betsson to consolidate, create synergies and apply our core B2C expertise and advertising and marketing insights to scale these property to their true potential. The settlement with GiG additional strengthens and expands Betsson’s outreach and development potential for its proprietary sportsbook and funds platforms within the B2B market.
Betsson has considerably invested within the improvement of its sportsbook and now delivers a strong providing. A key technique is to develop our sportsbook with B2B clients and I’m excited to collaborate with GiG as a distribution channel. We share the identical ardour for sports activities betting and offering a participant atmosphere which is exclusive, entertaining and secure.”
Richard Brown, Chief Govt Officer of GiG says: “I’m very enthusiastic about this transaction because it gives a number of upsides to GiG. Whereas placing the Firm in a financially sustainable place, it provides us the flexibility to concentrate on the place we see actual long run shareholder worth. This transaction serves as a strategic focusing of the Firm’s efforts in direction of the B2B phase. Providing each B2C and B2B providers had synergies up to now, nonetheless, the present conflicting priorities of the 2 enterprise areas, and elevated complexity available in the market, have lessened the potential providing on each fronts and our skill to signal new clients.
I’m delighted to retain our manufacturers on the platform and within the course of, including Betsson as a accomplice as we share the identical ambition of duty for all stakeholders, secure play for the top person, and an entertaining person expertise. I’m sure that along with their speciality, focus and robust monitor document on driving B2C development, it will likely be a fruitful partnership. Moreover, the deliberate integration of Betsson’s sportsbook into our platform providing, not solely gives price saving synergies, it additionally permits us to supply one of the vital well-renowned European sportsbooks to our present and future B2B companions. We’re excited to help Betsson’s development of the manufacturers now we have constructed and now look ahead to GiG subsequent chapter as a specialist iGaming B2B supplier”.
GiG’s full 12 months 2019 revenues had been €123.Zero million (€29.4m in This fall 2019) with an EBITDA of €14.1 million (€4.8m This fall 2019), assuming B2C as continued operations. The remoted B2C full 12 months 2019 revenues had been €79.Zero million (€19.0m in This fall 2019) with a full 12 months 2019 EBITDA of €8.1 million (€4.1m in This fall 2019). The divestment of the B2C vertical will result in a write-down of the remaining guide worth of the B2C property and associated goodwill, an impairment might be recognised within the fourth quarter 2019.
With the divestment of the B2C vertical, full 12 months 2020 revenues are anticipated within the vary of €70 – 75 million, with an EBITDA anticipated within the vary of €14 – 17 million, together with, for comparability, B2C as continued operations till completion of the transaction.
Anticipated completion of the transaction is mid April 2020, giving time for the obligatory regulatory approvals from merger management and gaming authorities. GiG is in dialogue with its largest bondholders and can search consent from its bondholders to increase the compensation of the 2017 – 2020 bond from the maturity date in March 2020 till 22 April 2020. Written resolutions for the 2 bonds will begin shortly, and GiG has obtained voting undertakings from buyers representing round 53% of the excellent quantity within the 2017 – 2020 bond, and round 46% of the excellent quantity within the 2019 – 2022 bond. As compensation for the extension of compensation date within the 2017- 2020 bond, bondholders in stated bond will obtain a consent price of 0.35% of the nominal quantity.
GiG invitations all events to a press convention with Q&A at the moment, 14 February, at 08:30 CET. Questions might be addressed each within the name and by way of the online. Please discover dial-in particulars and weblink under.
Weblink (an on-demand model might be accessible approx. 30 minutes after the decision utilizing the identical hyperlink):
Members dial in numbers:
Members Pin code: 84408716#
Stella EOC acts as monetary adviser to GiG in reference to the transaction.
For additional data, please contact:
Richard Brown, CEO of GiG
Chairman of GiG
Group CFO of GiG
This data is data that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The data was submitted for publication, at 07:30 CET on 14 February 2020.
About Gaming Innovation Group (GiG)
Gaming Innovation Group Inc. is a know-how firm offering options, services and products all through all the worth chain within the iGaming trade. Based in 2012, Gaming Innovation Group’s imaginative and prescient is `To open up iGaming and make it truthful and enjoyable for all’. Via its ecosystem of services and products, GiG is connecting operators, suppliers and customers, to create the most effective iGaming experiences on the earth. Gaming Innovation Group operates out of Malta and is dual-listed on the Oslo Inventory Change below the ticker image GIG and on Nasdaq Stockholm below the ticker image GIGSEK. www.gig.com
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SOURCE Gaming Innovation Group