GiG will pay a total of €35m for the affiliate group, including a €15m upfront cash payment. KaFe Rocks operates a portfolio of over 30 brands in more than 20 markets, such as Time2Play and USCasinos. This acquisition strengthens GiG Media’s position in the online casino affiliation space, especially in North America.
The group will be split into two separate entities – GiG Media and Platform & Sportsbook – during H1 2024. This acquisition will accelerate the diversification of GiG Media’s business, aligning with their strategic goal to mitigate risk and drive revenue growth through more customers, websites, and markets.
The synergies between the two entities are expected to generate a minimum revenue of €23m in 2024 for the KaFe Rocks assets. The acquisition’s EBITDA margin exceeding 45% results in a 2024 EV/EBITDA multiple of approximately 3.6x.
Jonas Warrer, group CEO, stated: “Our goal is to maintain our position as the leading casino affiliate in the industry and expand further in the North American market. The inclusion of KaFe Rocks aligns perfectly with these objectives. We eagerly anticipate integrating KaFe Rocks into the GiG family, unlocking additional business value for our partners and investors.”
Following the collapse of a takeover bid by Glitnor Group in 2022, KaFe Rocks welcomed the acquisition by GiG Media in November 2023. Aimee Speight, spokesperson for KaFe Rocks, said: “Joining GiG Media, we are optimistic about seeing KaFe Rocks business venturing into new heights.”
In January 2023, GiG completed its acquisition of AskGamblers and associated domains. The company also launched a strategic review in February, leading to the decision to split the business. The split involves GiG Media as the affiliate arm and Platform & Sportsbook as separate entities, allowing focused attention on each area of expertise.
The Media arm comprises GiG’s affiliate lead generation services, while Platform & Sportsbook encompasses technical igaming platforms, including Sportnco. The acquisition of Sportnco was finalized in April 2022 for €51.3m. The second division also includes front-end development and other managed services.
