In a strategic move to strengthen its position in the iGaming market, Gaming Innovation Group (GiG) has announced its plans to acquire affiliate specialist KaFe Rocks in a deal worth EUR 35 million.
The deal, once closed, will see GiG pay EUR 15 million in cash upfront, with the remaining amount to be paid out in four semi-annual installments over the next two years, contingent on certain performance targets. Additionally, GiG will also pay EUR 2.5 million in shares subject to specific operational cost-saving targets.
KaFe Rocks, a major iGaming affiliate with a portfolio spanning over 15 markets, is behind popular US-oriented affiliate brands like Time2play.com and USCasinos.com. The acquisition will allow GiG to expand its presence in the lucrative North American casino sector.
The acquisition is expected to close in December 2023 and is still subject to regulatory approvals.
A spokesperson for KaFe Rocks, Aimee Speight, described the agreement as a “momentous occasion” for the company. He stated that after considering several buyers, they were persuaded to choose GiG due to its impressive performance and track record of record-breaking results for 12 quarters in a row.
Jonas Warrer, GiG’s newly appointed chief executive officer, also expressed his enthusiasm about the acquisition, stating that it will further cement GiG’s position as a leading casino affiliate. He emphasized the potential for growth and the skilled team at KaFe Rocks, which will drive growth for the broader group.
In related news, GiG recently published its Q3 results, reporting another quarter of robust revenue growth across core verticals, showcasing the company’s continued success and growth in the iGaming industry.