## Gaming Group Acquires Sports Betting Firm
Gaming Innovation Group (GiG) has acquired Sportnco Gaming, a sports wagering and platform provider, for €50.8 million. Sportnco, formerly known as France Pari, provides comprehensive betting and gaming solutions to operators in regulated markets. They boast their own sportsbook and user management systems.
Sportnco has a strong presence in France and has expanded into Peru, Spain, and Greece. They collaborate with prominent names such as Betway, NetBet, and Casino Gran Madrid. In 2021, they anticipate generating over €9 million in revenue and €5 million in profit.
GiG asserts that this acquisition will elevate them to a leading platform and media provider with a vast reach. Together, they will hold licenses in 25 markets and collaborate with approximately 55 clients.
The Gaming Innovation Group (GiG) has declared the purchase of Sportnco, a prominent sports wagering provider. GiG is confident that this acquisition will generate substantial commercial, operational, and technological advantages, including cost reductions and expedited expansion.
GiG will disburse €50.8 million for Sportnco, with €23.5 million paid in newly issued GiG shares and the remaining €27.3 million paid in cash. GiG will also assume Sportnco’s existing debt of €19.2 million and may compensate up to €23 million in performance-based payments contingent on Sportnco’s performance in 2022 and 2023.
Richard Brown, the chief executive of GiG, expressed his enthusiasm regarding the acquisition, stating that it will propel GiG’s vision of becoming a global leader in platform, sports wagering, and media services for the online gambling sector. He emphasized Sportnco’s robust regulatory profile and high-quality sports betting offerings, which will broaden the target market for both companies. Brown also commended Sportnco’s team for establishing a successful company with a proven track record in competitive regulated markets.
The chief executive and originator of Sportnco, Herve Schlosser, stated that the two businesses are a “perfect fit” in terms of offerings and operational domains, and also share similar organizational values.
Schlosser added, “I’m thrilled about the sales potential of our combined offering.” “Sportnco sports wagering will enhance GIG’s product attractiveness, and our shared platform solution will enable us to cover regulated markets in Europe and the United States for all current and future clients.”
To finance the cash payment for the agreement, GiG reached an accord with SkyCity Entertainment Group, the New Zealand casino operator, which will invest €25 million in the company through a targeted stock issuance.
SkyCity CEO Michael Aherne expressed his satisfaction with expanding the operator’s strategic partnership with GiG, which commenced in 2019 when they collaborated to launch an online casino product.
Aherne explained, “This collaboration allows SkyCity to access a complementary high-growth gaming category and empowers us to implement an all-channel strategy.” “The combined GiG/Sportncoo enterprise will be licensed or certified in over 20 regions, including expanding markets such as the United States, Canada, and Latin America.
“We are pleased to support GiG in finalizing the funding of this transaction, becoming a significant shareholder, and assisting GiG in executing its strategic vision through board representation.”
The core of the matter is that the equity investment bolsters our digital capacities and reinforces our strategic alignment with GiG.
Brown expressed his delight in welcoming SkyCity as a new stakeholder.
“The shared vision of both enterprises and their emphasis on the evolving digitalization of gaming are anticipated to yield strategic benefits. GiG stands to gain from decades of retail expertise to refine our offerings, while SkyCity will profit from GiG’s firsthand digital experience, as well as the new prospects and Sportnco brought by the agreement.”
The takeover is projected to be finalized in February 2022, contingent upon approval from pertinent gambling regulators, shareholder consent to augment GiG’s authorized share capital, bondholder consent to extend the Sportnco loan, and final authorization from the GiG board of directors.
Sign up for the iGaming News newsletter.
