Sportnco is a B2B-focused company that offers turnkey betting and gaming solutions to operators in regulated markets. It provides proprietary sportsbook and player account management solutions and has a strong presence in France. It has also expanded into markets like Peru, Spain, and Greece. Sportnco is partnered with well-known brands like Betway, NetBet, Casino Gran Madrid, Casino Barcelona, Casino Atlantic City, and Olimpo. In 2021, it expects to generate revenue of over €9m with earnings of around €5m. The acquisition by GiG will enhance its position as a leading platform and media provider. GiG and Sportnco will be licensed in 25 markets, serving approximately 55 clients.
GiG will pay an initial consideration of €50.8m for the acquisition, with €23.5m paid in new GiG shares and the remaining €27.3m in cash. GiG will also assume Sportnco’s existing debt of €19.2m and has the possibility to pay an earn-out of up to €23m based on the supplier’s performance in 2022 and 2023.
The CEO of GiG, Richard Brown, expressed excitement about the acquisition, stating that it accelerates their long-term vision of becoming a global leader in platform, sportsbook, and media services for the iGaming industry. He also praised Sportnco’s tier one sportsbook product and the potential for commercial, operational, technological synergies, cost savings, and accelerated growth. Sportnco CEO Hervé Schlosser agreed that the two companies are a perfect match, both in terms of product and corporate values.
To fund the cash consideration, GiG has entered into an agreement with SkyCity Entertainment Group, where the New Zealand casino operator will invest €25m through a directed share issue. SkyCity CEO Michael Ahearne expressed excitement about expanding the strategic partnership and supporting GiG’s financing of the transaction, which will strengthen their digital capabilities and strategic alignment.
The acquisition is expected to close in February 2022, pending approvals from relevant gaming authorities, shareholder approval to increase GiG’s authorized shares, bondholder approval on the rollover of Sportnco’s loans, and final approval by the GiG board of directors.
