In mid-December, GiG, a prominent iGaming company, announced the acquisition of the highly regarded affiliate website AskGamblers for €45m ($47.9m). This strategic move is expected to enhance GiG’s revenue and profitability while expanding its geographical footprint and reducing operational risk. GiG’s management is now focused on leveraging its expertise to elevate the performance of AskGamblers and maximize its potential.
Key Details of the Acquisition
GiG’s subsidiary, Innovation Labs Limited, completed the acquisition of Catena Publishing Limited and Catena Media doo Beograd through a share purchase. The acquired websites generated impressive revenue of €12.9m and €8.4m in EBITDA during the first nine months of 2022. GiG anticipates an EBITDA margin of 60-70% from these assets going forward.
Enhancing AskGamblers’ Performance
GiG is eagerly anticipating the commercial opportunities that AskGamblers brings to the table. With a clear strategy in place, GiG plans to implement its technical SEO and marketing technology, leveraging AskGamblers’ extensive knowledge in the iGaming industry. This concerted effort aims to drive substantial growth, increase revenue, and improve EBITDA in the near future.
Geographical Expansion and Revenue Diversity
The acquisition of AskGamblers not only adds a leading casino affiliate site to GiG’s portfolio but also broadens its geographical footprint. This expansion increases revenue diversity both in terms of geography and client base. By diversifying its operations, GiG effectively reduces overall operational risk, strengthening its position in the market.
Transaction Timeline and Consideration
Out of the total consideration of €45m, €20m has already been paid, while the remaining balance will be settled in two installments. GiG has committed to paying €10m on January 31, 2024, and the remaining €15m on January 31, 2025. This staggered payment structure allows for effective financial planning and management of cash flow.
GiG CEO’s Outlook and Strategic Focus
GiG’s CEO, Richard Brown, expressed enthusiasm for the acquisition, highlighting the immense growth potential it holds. He emphasized that the acquisition aligns with GiG’s strategic vision to expand its portfolio and deliver long-term value. Brown believes that the addition of AskGamblers will strengthen GiG’s market position and enhance its ability to capitalize on emerging opportunities.
GiG’s acquisition of AskGamblers for €45m marks a significant milestone in its strategic growth plan. The integration of AskGamblers into GiG’s portfolio presents exciting commercial opportunities and the potential for substantial revenue and EBITDA growth. By leveraging its technical SEO and marketing technology, GiG aims to enhance AskGamblers’ performance and maximize profitability. This acquisition also enables GiG to diversify its revenue streams and reduce operational risk, bolstering its position as a leader in the iGaming industry. With a strong focus on expansion and value creation, GiG is well-positioned to capitalize on the evolving landscape of the online gambling market.