Gaming Innovation Group Inc. (GiG) acquires KaFe Rocks Ltd. Two industry leaders signed a deal, and the popular affiliate company will become a part of the GiG.
Expansion to North America:
GiG Media is the famous lead generator in the whole online casino industry, and this acquisition will strengthen the company’s position in the global market. It will also help the company in the North American expansion.
This is the latest company’s success in the recent period: in the last few years, GiG Media had 12 successive quarters in which it hit revenue records.
On the other hand, KaFe Rocks is famous among the iGaming affiliates. The company has several Power Affiliate top 10 rankings, and it’s present in more than 15 key markets all around the world. However, among the most famous are its US flagship brands, Time2play.com and UScasinos.com, so GiG Media might use its popularity to conquer the US market. On top of that, Time2Play was greatly profitable in the last 12 months.
This acquisition follows the deal with AskGamblers, and it seems that GiG Media won’t stop acquiring various media and marketing technology giants.
It is expected that KaFe Rocks’ revenue in 2024 will be around 23 million euros, and its EBITDA margin won’t be below 45%, so the company will gain significant profit from the acquisition. Also, GiG will benefit from this deal since its estimated revenue for 2024 is between 125 and 135 million euros.
Jonas Warrer, CEO of GiG, said: “We want to remain the leading casino affiliate in the industry and grow in the North American market. Our acquisition of KaFe Rocks validates these goals. After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family. 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.”
Aimee Speight, spokesperson for KaFe Rocks, added: “It’s a momentous occasion for KaFe Rocks to join forces with GiG Media. We considered several buyers but were persuaded to go with GiG Media based on the strong performance the company has shown over the last few years. Joining GiG Media, we are optimistic about seeing Kafe Rocks business venturing into new heights.“
The terms of acquisition:
According to the PR Newswire, he cost of acquisition was 35 million euros, and 15 million was paid upfront in cash. Another 20 million will be paid in semi-annual installments during the following two years, with additional earn-out depending on the success and meeting the performance targets.
GiG will also pay 2.5 million euros in shares for the operational cost savings targets.
The final approval is expected in December.