A deal worth €45 million has been struck between Gaming Innovation Group (GiG) and Catena Media, allowing the former to diversify its media business by taking over sites such as Askgamblers.com, Johnslots.com, Newcasinos.com, and some other smaller domains.
According to GiG, €20 million will be paid in cash on closing, €10 million twelve months after closing, and the remaining €15 million 24 months after closing. Closing is anticipated in Q1 2023.
Morten Hillestad, Director of Business Development in GiG Media, said: “After three years of consolidating and expanding the GiG Media business – realising strong annual organic growth – the time was ripe to act when this acquisition opportunity emerged. GiG Media has developed world class marketing technology and operational capabilities over the preceding years, and we feel that bringing the AskGamblers brand into the company structure will provide multiple opportunities for it to flourish.”
Michael Daly, CEO of Catena Media, said: “Today’s agreement is a major step in our journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas. I am confident that in GiG we have found a buyer that will provide a strong environment for AskGamblers and the other brands and their talented people to develop and grow.”
The websites included in the acquisition generated €12.9 million in the first nine months of 2022 and had an EBITDA of €8.4 million. GiG predicts an EBITDA margin between 60-70% from the assets going forward.
Richard Brown, CEO of Gaming Innovation Group commented: “GiG is extremely excited to take over the premium AskGamblers brand from Catena. Combining the assets with GiG’s media technology and operational capabilities, provides us with a great opportunity to expand our global reach and to deliver a path for the brand to continue with its strong evolution. The expansion of our strategic position in conjunction with the deal structure gives the group another great blueprint for growth. We look forward to integrating the assets and current staff into Gaming Innovation Group.”
The acquisition will expand GiG Media’s business into new markets, increasing revenue growth potential and operational synergies. The acquired websites are strong in markets that are currently non-core markets for GiG Media, expanding their current geographical reach.
GiG will fund the initial cost via a mix of its own funds, a revolving credit line (RCF), and a stock issuance. Current shareholders have guaranteed to take part in the stock issuance and the RCF, guaranteeing adequate financing to finish the transaction at completion.
The procurement will broaden GiG Media's business further in keeping with the plan to generate sustainable long-term development and furnish the company with several significant strategic resources and multiple income prospects. The bought websites are powerful in markets that are currently non-core markets for GiG Media, thus extending their current geographical scope. In addition to the income growth potential, operational efficiencies are anticipated to be achieved after the acquisition through the shared utilization of marketing technologies, business intelligence systems and essential roles.