Gaming Innovation Group: Completion of the sale of B2C assets to Betsson
Gaming Innovation Group Inc. (GiG) has today completed the sale of its B2C assets to Betsson Group (Betsson). The sale include the operator brands Rizk, Guts, Kaboo and Thrills and related operational entities. The brands will continue to be operated on GiG’s platform for a minimum of 30 months and Betsson becomes a long term partner of GiG, generating revenues to GiG’s Platform Services. For the first 24 months, Betsson will pay a premium platform fee based on NGR generated.
GiG today receives EUR 33 million as consideration for the sale, including EUR 2 million for the cash deposit securing GiG’s Spanish casino license. GiG will use part of these proceeds to repay the Company’s SEK 300 million 2017 - 2020 bond on 22 April 2020. The repayment of the SEK 300 million bond will strengthen GiG’s balance sheet and significantly reduce the financial leverage ratio.
63 GiG employees and full time consultants are today transferred to Betsson. As part of the transaction, GiG and Betsson also entered into a Transition Service Agreement where GiG will offer services to Betsson to support operations of the brands for an initial period. These services will be invoiced at cost and comprises an additional 54 GiG employees.
The sale of the B2C vertical is a result of GiG’s strategic review to reduce complexity and improve efficiency. By divesting the B2C vertical, GiG will free up resources, enabling full dedication on driving and growing its B2B business, securing stable and sustainable earnings and profit margins. GiG sees a large and sustainable addressable market for its Media and platform business as the regulation of the iGaming industry continues and is well positioned with the omni-channel platform offering to capitalise on the continued digital transformation of the worldwide gambling market.
For more details on the transaction, see announcement on 14 February 2020.
For further information, please contact:
Richard Brown, CEO, richard.brown@gig.com, +34 661599025
Tore Formo, Group CFO, tore@gig.com, +47 91668678
This information is information that Gaming Innovation Group Inc. (GiG) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, at 12:05 CET on 16 April 2020.
About Gaming Innovation Group (GiG)
Gaming Innovation Group is a technology company providing solutions, products and services throughout the entire value chain in the iGaming industry. Founded in 2012, Gaming Innovation Group’s vision is ‘To open up iGaming and make it fair and fun for all’. Through its ecosystem of products and services, GiG is connecting operators, suppliers and users, to create the best iGaming experiences in the world. Gaming Innovation Group operates out of Malta and is dual-listed on the Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under the ticker symbol GIGSEK. www.gig.com.