GiG Sells Rizk, Kaboo, Guts, and Thrills Casinos to Betsson
Posted at 14 February 2020
The deal is worth €31 million and according to the agreed terms, Betsson will pay €22.3 million in cash to acquire the assets as well as a premium platform fee based on the generated net revenue. As much as €8.7 million of the premium fee will be paid in advance.
Betsson revealed that it is committed to keeping the acquired brands active on the GiG platform for at least 30 months. Betsson is also willing to make its sportsbook and payment solutions accessible to GiG customers.
Richard Brown, a GiG CEO, explained that GiG is going to focus on its B2B ventures: “This transaction serves as a strategic focusing of the Company’s efforts towards the B2B segment. Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts and our ability to sign new customers.”
Pontus Lindwall, a Betsson AB CEO, also commented on the deal and said that it enables the company to consolidate its positions on strategic markets such as the UK, Malta, Sweden, and Germany. Rizk is also going live in Spain and Croatia.
The sale is now waiting for authorities’ approval, and it should be closed by April 2020.
Meanwhile, GiG posted a financial report according to which the B2C revenue for 2019 was €79 million with EBITDA amounting to €8.1 million. After the sale of the B2C brands, GiG is expecting a 2020 revenue of €70-75 million and the EBITDA being in the range €14-17 million.
Betsson also revealed its financial performance for 2019. The total revenue amounted to SEK5.15 billion. This is a 4.6% decline YOY, but it comes after an eventful year full of legislative hurdles and solid financial penalties.