The gaming enterprise, GiG, has acquired Sportnco, a sports wagering firm, for a sum of 50.8 million euros. Sportnco supplies betting and gaming services to businesses across numerous nations. They have a substantial presence in France and have extended their operations to Peru, Spain, and Greece. They collaborate with prominent entities such as Betway, NetBet, and Casino Gran Madrid. They are projected to generate 9 million euros in income this fiscal year. GiG asserts that this transaction will enhance their standing as a company and broaden their reach. They will now be able to conduct operations in 25 nations and collaborate with 55 clients.
The Gaming Innovation Group (GiG) has declared that the purchase of Sportnco, a prominent sports betting enterprise, will bring together a collection of excellent aspects, such as enhanced business practices, streamlined operations, and innovative technology. This will result in cost savings and accelerate their growth trajectory.
The transaction will cost GiG €50.8 million, with €23.5 million paid in newly issued GiG shares and the remaining portion in cash. GiG will also assume Sportnco’s €19.2 million debt and may pay up to €23 million more if Sportnco performs well in 2022 and 2023.
Richard Brown, the head of GiG, stated, “We are thrilled to welcome Sportnco to the GiG family.” “This agreement brings us closer to our ambitious goal of becoming the global leader in providing platforms, sports betting, and media services for the iGaming sector.”
He further stated, “Sportnco has a strong reputation in numerous markets and produces exceptional sports betting products. This collaboration will enable both companies to reach a wider customer base, both now and in the future.” “The teams at Elv and Sportnco have constructed a remarkable company over the years, with a superior product and a history of success in challenging markets. We are eager to combine the strengths of both companies to achieve even faster growth.”
The heads of Sportncos and GIG have declared their merger a “perfect fit,” citing shared values and complementary product lines. The combined entity anticipates significant sales growth, particularly in the sports betting sector. GIG’s platform will be bolstered by Sportncos’ offerings, expanding their reach into regulated markets across Europe and North America.
To finance the acquisition, GIG has secured a €25 million investment from SkyCity Entertainment Group, a New Zealand casino operator. This partnership marks a continuation of their collaboration, which began in 2019 with the launch of an online casino product. SkyCity’s CEO expressed enthusiasm for the expanded partnership, highlighting its potential to broaden their reach into the burgeoning online gaming market.
The combined entity will operate under licenses in over 20 jurisdictions, including key growth markets such as the United States, Canada, and Latin America. SkyCity’s investment signifies their confidence in GIG’s strategic vision and their commitment to supporting the company’s expansion.
It is essential that the equity investment bolsters our digital abilities and aligns with GiG’s strategic roadmap.
Brown expressed his delight at welcoming SkyCity as a new stakeholder.
“The shared vision and focus of both entities on the digitalization of gambling is anticipated to yield strategic advantages. GiG will gain from SkyCity’s decades of retail experience, enhancing our offerings, while SkyCity will profit from GiG’s firsthand digital expertise and the new possibilities presented by the Sportnco agreement.”
The takeover is projected to be finalized in February 2022, contingent upon approval by pertinent gambling authorities, shareholder consent to augment GiG’s authorized share capital, bondholder consent to extend the Sportnco loan, and ultimate approval by the GiG board of directors.
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