The iGaming industry is taking notice as Gaming Innovation Group (GiG) made a bold move by purchasing affiliate expert KaFe Rocks for a significant EUR 35 million (about $37.4 million). With this purchase, GiG Media hopes to strengthen its position as a leading provider of leads in the iGaming industry and greatly increase its presence in the very lucrative North American casino industry.
As stipulated in the agreement, GiG will pay EUR 15 million in cash as an upfront payment when the purchase closes. If certain performance goals are met, the remaining monies will be released over the next two years in four semi-annual payments. In addition, GiG plans to issue 2.5 million shares of its stock, contingent upon meeting certain targets related to cost reduction.
Well-known brands like Time2play.com and USCasinos.com, both of which are targeted at the US market, are operated by KaFe Rocks, a significant participant in the iGaming affiliate field with a portfolio spanning over 15 territories. Particularly Time2Play has been growing at a remarkable rate, which makes it a very significant asset for GiG.
GiG Media is steadfast in its dedication to improving the purchased assets and optimizing their financial gain. It is anticipated that KaFe Rocks would bring in EUR 23 million in sales by 2024, with an EBITDA margin that is more than 45%.
The acquisition is on track to be finalized in December 2023 but remains subject to regulatory approvals.
Aimee Speight, a spokesperson for KaFe Rocks, described the agreement as a “momentous occasion.” He revealed that while considering various buyers, the decision to select GiG Media was primarily influenced by the company’s outstanding performance. GiG’s track record of consistently posting record-breaking results for 12 consecutive quarters was a compelling factor in their choice.
“Joining GiG Media, we are optimistic about seeing KaFe Rocks business venturing into new heights,” said Speight.
Jonas Warrer, the newly appointed CEO of GiG, expressed his eagerness to cement GiG’s position as the premier casino affiliate in the industry. He believes that the acquisition of KaFe Rocks is a validation of this ambition.
“In KaFe Rocks, we’ve found a flourishing business led by an exceptionally skilled team. Their reputable affiliate assets will undoubtedly drive growth for the broader group. I eagerly await working closely with the KaFe Rocks team,” said Warrer.
As GiG’s acquisition of KaFe Rocks unfolds, the iGaming industry will be closely watching to see how this strategic move reshapes the landscape of casino affiliations.
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