Gaming Innovation Group acquires Sportnco

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OSLO, Norway, Dec. 22, 2021 /PRNewswire/ — “Top quality, confirmed B2B sportsbook – doubling short- and long-term addressable market and geographic enlargement”

Gaming Innovation Group Inc. (“GiG” or the “Firm”) has at this time signed a Share Buy Settlement (“SPA”) to amass the iGaming firm Sportnco Gaming SAS (“Sportnco”). Sportnco is likely one of the main platform suppliers of turnkey betting and gaming options for operators in regulated markets by its inhouse developed sportsbook and PAM. The mixed firm will improve and strengthen GiG’s place as one of many {industry} main platforms and media suppliers with revolutionary and proprietary merchandise and creating one of many largest and quickest rising suppliers in regulated iGaming with an unparalleled geographical footprint.

Mixed, GiG and Sportnco can be licensed in 25 markets, presently with round 55 purchasers, as Sportnco’s geographical presence is very complementary to GiG’s present providing. Sportnco’s tier 1 sportsbook product is powerful, and the acquisition is predicted to create engaging business, operational, and technological synergies, in addition to allow price financial savings and accelerated progress.

Sportnco is estimating revenues for 2021 in extra of €9 million with an EBITDA round €5 million.

The preliminary consideration is €50.8 million, whereof €23.5 million can be paid in new shares in GiG and €27.3 million in money. As well as, GiG will assume present debt in Sportnco of €19.2 million and there can be an earn-out of as much as €23.0 million based mostly on the Sportnco efficiency in 2022 and 2023.

GiG has additionally entered into an settlement with SkyCity Leisure Group Restricted (“SkyCity”), whereby SkyCity will, topic to ultimate completion of the acquisition, make investments €25 million in GiG by a directed share difficulty at NOK 18.00 per share, that may finance the primary a part of the money consideration.

Closing is predicted in February 2022 and is topic to essential approvals from related gaming authorities, shareholder approval to extend the authorised shares in GiG, bondholder approval on the rollover of loans in Sportnco, and ultimate approval by GiG’s Board of Administrators.

Richard Brown, CEO of GiG stated: “We’re tremendously excited to welcome Sportnco into Gaming Innovation Group product providing. The transaction accelerates our long-term imaginative and prescient to turn into a world chief within the provision of platform, sportsbook and media providers to the iGaming {industry}. The massively complimentary regulatory profile and high-quality sportsbook that Sportnco have, quickly expands each firms short- and long-term addressable market. Herve and the staff at Sportnco have constructed a unbelievable firm during the last decade, creating an ideal product and dealing in a spread of aggressive regulated markets and have a confirmed observe report of success. We’re very excited to mix the 2 firms’ choices and speed up our progress potential.”

Hervé Schlosser, CEO and founding father of Sportnco, stated “GIG and Sportnco actually have the right match each by way of product and geographical areas of enterprise but additionally as they share the identical company values. I’m excited by the gross sales potential of our mixed choices. Sportnco sportsbook will add energy and attractiveness to the supply of GIG and our mutual PAM options will allow us to cowl European and American regulated markets for all our present and future purchasers.”

SkyCity’s CEO, Michael Ahearne stated “we’re excited that SkyCity is increasing its strategic partnership with the GiG staff. GiG is a longtime on-line operator who now we have come to know effectively since partnering in mid-2019 to launch the SkyCity On-line On line casino. The partnership has supplied SkyCity with entry to a complementary and high-growth gaming class and has enabled us to pursue an omnichannel technique. The mixed GiG/SportNCo enterprise can be licensed or licensed in over 20 jurisdictions, together with progress markets such because the US, Canada and Latin America. We’re delighted to help GiG within the financing of the transaction, turning into a serious shareholder and serving to GiG execute on its strategic imaginative and prescient by illustration on the Board. Importantly, the fairness funding builds our digital functionality and strengthens our strategic alignment with GiG.”

Richard Brown provides: “we’re additionally delighted to convey on SkyCity as a brand new shareholder, an organization held in high-regard inside the land-based section of the {industry},. Each firms’ outlook and focus across the ever-evolving digitalisation of playing is predicted to allow strategic features, with GiG benefiting from many years of retail expertise to finetune our providing and SkyCity benefiting from first-hand digital expertise that GiG holds, and new alternatives led to by the transaction with SportNCo.”

Sportnco

Sportnco is an impartial sports activities betting and iGaming enterprise with worldwide presence in Europe, South America and the US by a mix of tier 1 purchasers and robust native gamers. The corporate has been profitable in coming into into new geographical markets and presently has round 40 companions working in 12 international locations throughout Europe and Latin America and presently being launched in new areas in North America.

The corporate began in 2008, and is a specialist in on-line sports activities betting for regulated markets, beginning in France, then Spain and increasing to different markets as their sports activities betting exercise was getting regulated. The corporate has developed its personal proprietary betting platform, providing an entire stay and pre-match betting supply on greater than 50 sports activities. It consists of an skilled staff of sports activities merchants who carry out betting citation and counterparty threat administration to ship each engaging odds and excessive stage of margin. Sportnco operates the main B2B betting networks in France and Spain and is energetic in different European jurisdictions equivalent to Belgium, Portugal, and Greece, in addition to in South America and the US. The corporate has been creating a accountable gaming coverage since its launch, which has led it to be current solely in extremely regulated markets.

Sportnco’s platform presents a participant account administration (PAM) system that allow its purchasers to launch an entire supply of on-line on line casino video games, sports activities betting, poker and bingo, as it’s related to greater than 40 sport suppliers. This highly effective technological integration device  permits operators to handle all the important thing features of their actions: gamers KYC, CRM and bonusing, regulatory report by its correct digital vault.

Its shareholders are made up of a number of French personal buyers, alongside the CEO and founding father of the corporate, Hervé Schlosser, who’s the primary shareholder of Sportnco, and the institutional investor BNP Paribas Développement who entered in 2019. Sportnco has workplaces in Toulouse (France), Madrid and Barcelona (Spain), and presently employs round 130 individuals, led by an skilled administration staff made up of {industry} veterans.

SkyCity

SkyCity Leisure Group Restricted (“SkyCity”) is New Zealand’s largest tourism, leisure and leisure firm and is twin listed on the New Zealand and Australian inventory exchanges (with a market capitalisation of round NZ$2.3 billion)

SkyCity operates built-in leisure complexes in New Zealand (Auckland, Hamilton and Queenstown) and in Adelaide, Australia, that includes on line casino gaming amenities, vacationer points of interest, premium eating places and bars, in addition to award-winning accommodations. SkyCity just lately accomplished an A$330 million refurbishment of its Adelaide property and is presently creating an Worldwide Conference Centre and new lodge adjoining to its flagship property in Auckland (complete price round NZ$750 million). 

In August 2019, SkyCity On-line On line casino was launched on GiG’s platform, an offshore on-line gaming enterprise for New Zealanders, as a logical extension of its land-based on line casino operations. The platform has resonated with prospects since launch with LTM income to 30 September 2021 of round NZ$37 million and a major energetic buyer base. GiG’s partnership with SkyCity has supplied it with entry to a complementary, high-growth gaming class and allowed it to pursue an omnichannel technique.

The Acquisition

GiG will purchase 100% of the shares in Sportnco Gaming SAS for an preliminary consideration of €50.8 million, whereof €23.5 million in new shares in GiG and €27.3 million in money. The share worth can be decided by the VWAP of the GiG share 10 days previous to closing. The shares can be topic to a 6-month lock-up interval. The acquisition implies an enterprise worth of Sportnco of €70 million, together with round €19.2 million in present long run loans with French banks that can be rolled over.

The sellers are entitled to a two yr earn-out based mostly on the efficiency in 2022 and 2023 with as much as €11.5 million per yr. The earn-out can be paid 50% in money and 50% in new shares in GiG, the place the variety of shares to be issued shall be based mostly on a 10-day VWAP of the GiG share on the time of cost, anticipated in April 2023 and April 2024.

The variety of excellent shares of GiG as of at this time is 96,675,626 (98,415,626 on a totally diluted foundation), and the variety of licensed shares is 110,000,000. By assuming at this time’s EUR/NOK change price and a share worth of NOK 18.00, GiG will difficulty round 14.1 million new shares to SkyCity and round 13.2 million new shares to the shareholders of Sportnco. After the issuance of the brand new shares, the variety of excellent shares in GiG is estimated to be round 124.0 million, whereof SkyCity will maintain round 11.4% and the shareholders of Sportnco 10.7%.

Sportnco has 57 shareholders whereof the most important being its CEO and founder its CEO and founder Hervé Schlosser (15.6%), Olivier Marchal, President at Bain&Co France, (9.1%) and BNP Paribas Développment (6.5%), and these will maintain roughly 1.7%, 1.0% and 0.7% respectively in GiG after closing.

GiG will name for a particular assembly of shareholders to be held on or about 18 January 2022 to approve to amend the certificates of incorporation to extend the variety of licensed shares from 110,000,000 to cater for the acquisition, and to approve the rise the board of administrators from 6 to 7 and to appoint one consultant of SkyCity to the board of administrators of GiG.

To maintain key workers in Sportnco, a 3-year possibility program can be entered into, whereby the choice holders, pending continued employment, will obtain shares in GiG at future VWAP valuation as much as a complete mixture worth of €4 million.

Bond

The acquisition requires  the bond phrases to permit for roll over of the present long-term loans in Sportnco. GiG additionally plans for a faucet difficulty of as much as SEK 100 million (€10 million) to finance a part of the up-front money consideration. GiG has engaged in discussions with its largest bondholders and obtained indicated help for the required amendments from buyers representing roughly 59% per cent of the excellent bond quantity. The formal voting course of to amend the bond phrases can be introduced at first of January.

Investor presentation and webcast

CEO Richard Brown will current the acquisition by way of livestream at 13:00 CET at this time. The presentation can be adopted by a Q&A-session, and buyers, analysts and journalists are welcome to take part. The presentation can be given in English.

Be part of the presentation: https://television.streamfabriken.com/gig-pressconference-2021
Name in: +46 856642651 or +44 3333000804 – pin: 57637134#

For additional info, please contact:
Richard Brown, CEO GiG, [email protected], +34 661599025
Herve Schlosser, CEO Sportnco, [email protected]
Ben Kay, GM Technique & Investor Relations, SkyCity, [email protected]

This info is info that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The data was submitted for publication, by the company of the contact individual set out above, at 08:00 CET on 22 December 2021.

About Gaming Innovation Group (GiG)
Gaming Innovation Group is a number one iGaming know-how firm, offering options, services to iGaming Operators. Based in 2012, Gaming Innovation Group’s imaginative and prescient is ‘To be the industry-leading platform and media supplier delivering world-class options to our iGaming companions and their prospects.  GiG’s mission is to drive sustainable progress and profitability of our companions by product innovation, scalable know-how and high quality of service. Gaming Innovation Group operates out of Malta and is dual-listed on the Oslo Inventory Trade underneath the ticker image GIG and on Nasdaq Stockholm underneath the ticker image GIGSEK. www.gig.com

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