GiG, a leading iGaming company, is set to acquire the renowned AskGamblers brand in a transaction structured through a Share Purchase Agreement (SPA). The deal includes the acquisition of Catena Publishing in Malta and Catena Media D.O.O. Beograd in Serbia. With the closing expected in the first quarter of 2023, GiG will pay a total of €45 million, divided into three installments over a period of 24 months. The acquisition presents a significant opportunity for GiG Media to expand its already impressive portfolio of websites and leverage its robust marketing technology and operational capabilities.
Financial Overview:
During the first nine months of 2022, the acquired websites under AskGamblers generated €12.9 million in revenue and €8.4 million in EBITDA. GiG foresees an EBITDA margin ranging between 60-70% from the assets going forward. These promising financial figures, combined with GiG’s track record of strong organic growth, have solidified the decision to pursue this acquisition.
Strategic Rationale:
GiG Media Director of Business Development, Morten Hillestad, expressed confidence in the acquisition, highlighting the extensive efforts made by GiG Media to consolidate and expand its business over the past three years. Bringing AskGamblers into the company structure opens up numerous opportunities for growth and synergy. GiG Media’s world-class marketing technology, coupled with the established AskGamblers brand, creates a strong foundation for future success.
Funding the Acquisition:
To finance the initial consideration of €20 million in cash, GiG plans to utilize a combination of its own cash reserves, a revolving credit facility (RCF), and a share issue. The group has secured commitments from existing shareholders to participate in the share issue and RCF, ensuring sufficient funding for the transaction’s completion at closing. An additional €10 million will be paid 12 months after closing, with the remaining €15 million balance due 24 months after closing.
Industry Perspective:
Catena Media CEO, Michael Daly, expressed confidence in the deal, emphasizing their strategic focus on online sports betting and casino affiliation in high-growth, regulated markets in the Americas. The acquisition by GiG provides a promising environment for AskGamblers and other brands to thrive and grow under the new ownership.
GiG’s acquisition of AskGamblers, structured through a Share Purchase Agreement, marks a significant milestone in the company’s journey. With a strong financial outlook and a strategic approach to leveraging GiG Media’s technological expertise, the acquisition presents an exciting opportunity for both GiG and AskGamblers. As the transaction progresses towards the expected closing in the first quarter of 2023, GiG is poised to strengthen its market presence and solidify its position as a leader in the iGaming industry.