Gaming Innovation Group has disclosed the completion of its €51.37m purchase of sports betting and igaming solution provider Sportnco, which was first detailed in late December 2021.
Upon completion, the group says it can now “step forward into the next chapter in GiG’s history,” with its board to place a strong focus on overall operations, including the post-merger integration, as well as continuing to look at possible strategic options to increase shareholder value going forward.
Richard Brown, CEO of GiG, explained: “The team at Sportnco have built a tremendous business, one that is highly complementary to GIG’s offering both in product but also addressable market increase, and now the work begins to realise the truly existing growth opportunities that the business combination can pursue.
“We welcome both the owners of Sportnco & SkyCity as shareholders and the staff of Sportnco into GiG organisation and now move forward with full focus on the execution of the post-merger integration plan.”
Of the total purchase price, €27.87m has been paid in cash and €23.50m in new shares, with Sportnco to also retain €18.63m of its existing long-term loans.
Furthermore, alongside the acquisition agreement, GiG also previously deepened its alliance with New Zealand’s SkyCity in December of the past year.
This saw the casino and entertainment operator invest €25m in GiG, therefore financing the main part of the cash consideration to the shareholders of Sportnco.
The group has 84 shareholders, the largest being CEO and founder Hervé Schlosser (15.6 per cent), Olivier Marchal, President at Bain&Co France (9.1 per cent), and BNP Paribas Développement (6.6 per cent), who will hold 1.60 per cent, 0.93 per cent and 0.67 per cent respectively in GiG. SkyCity will hold 10.98 per cent.
In addition, the shareholders of Sportnco are entitled to a two year earn-out, of up to €11.5 million per year, based on performances across 2022 and 2023 This will be paid 50 per cent in cash and new shares.
Hervé Schlosser, CEO and founder of Sportnco, commented: “Together with all the teams and shareholders who have built the success of Sportnco and Tecnalis, we are extremely proud of the journey we have accomplished since 2008, and of our integration today into the GIG group.
“I look forward to opening this new chapter as I am confident that, together, we will offer stronger technology solutions for our customers in the fast-growing regulated markets.”