- Legal States
Julie Moraine December 22, 2021 3 min read
GiG to Acquire Sportnco with New Stock and SkyCity Cash
Gaming Innovation Group (GiG) announced today it entered into a complex agreement including a share purchase agreement to acquire iGaming company Sportnco Gaming SAS and a directed share issue investment with SkyCity Entertainment Group.
Share Purchase Agreement
The share purchase agreement for Sportnco’s acquisition, a provider of turnkey betting and gaming solutions, has an initial consideration of €50.8 million ($57.5 million). Out of this sum, €23.5 million ($26.6 million) will be paid in newly-issued GiG stock. Most of the cash payment, €27.3 million ($30.9 million), will be paid through an investment from SkyCity Entertainment, which will be contributing €25 million ($28.3 million) through a directed share issue at NOK18.000 per share.
“The transaction accelerates our long-term vision to become a global leader in the provision of platform, sportsbook and media services to the iGaming industry. The hugely complimentary regulatory profile and high-quality sportsbook that Sportnco have, rapidly expands both companies short- and long-term addressable market.”Richard Brown, CEO, GiG
The combination is expected to create operational, commercial, and technological synergies to enable cost savings and accelerate growth, as well as expand GiG’s geographical presence to 25 regulated markets. Sportnco’s markets of operation are highly complementary to GiG’s current offering and its sportsbook product is already positioned with tier 1 operators.
“Sportnco sportsbook will add strength and attractiveness to the offer of GIG and our mutual PAM solutions will enable us to cover European and American regulated markets for all our existing and future clients.”Hervé Schlosser, CEO and founder, Sportnco Gaming
Under the purchase agreement, GiG will also assume Sportnco’s existing debt of €19.2 million ($21.7 million) and, based on Sportnco’s performance in 2022 and 2023, could pay to add up to €23.0 million ($26 million).
The complex transaction that is expected to close in February 2022 is subject to a number of conditions, including obtaining necessary approvals from all relevant gaming authorities, GiG shareholder approval for the increase in share capital for the stock part of the transaction, bondholder approval for the rollover of existing Sportnco debt, as well as final approval by the Board of Directors at GiG.
Commenting on the complex transaction, SkyCity CEO Michael Ahearne outlined the expansion of a strategic partnership that started in 2019 with the launch of SkyCity Online Casino and opened up opportunities for SkyCity to pursue an omnichannel strategy by offering the company access to “a high-growth gaming category.”
Delighted to participate in the financing of the transaction and to become a major shareholder at GiG, Ahearne concluded by stressing the importance of this equity investment related to SkyCity’s “digital capability and strategic alignment with GiG.”
With 4 years experience as an analyst, Julie—or ‘Jewels’, as we aptly refer to her in the office—is nothing short of a marvel-worthy in her attention to the forex and cryptocurrency space as she quickly became the first pick to co-pilot education to the masses with Mike.
Business December 22, 2021