Gaming Innovation Group Acquires iGaming Company Sportnco.

MANews-(C)2009-2021

Malta-based iGaming technology company Gaming Innovation Group Inc has agreed to acquire the iGaming company Sportnco Gaming SAS, the company said.

GiG will acquire 100% of the shares in Sportnco Gaming SAS for an initial consideration of EUR 50.8m (USD 57.45m), whereof EUR 23.5m in new shares in GiG and EUR 27.3m in cash.

Sportnco is a platform provider of turnkey betting and gaming solutions for operators in regulated markets through its inhouse developed sportsbook and PAM.

The combined company will enhance and strengthen GiG's position as one of the industry leading platforms and media providers with innovative and proprietary products and creating one of the largest and fastest growing providers in regulated iGaming with an unparalleled geographical footprint.

Combined, GiG and Sportnco will be licensed in 25 markets, currently with around 55 clients, as Sportnco's geographical presence is highly complementary to GiG's current offering.

Sportnco's tier 1 sportsbook product is strong, and the acquisition is expected to create attractive commercial, operational, and technological synergies, as well as enable cost savings and accelerated growth.

Sportnco is estimating revenues for 2021 in excess of EUR 9m with an EBITDA around EUR 5m.

The initial consideration is EUR 50.8m, whereof EUR 23.5m will be paid in new shares in GiG and EUR 27.3m in cash.

In addition, GiG will assume existing debt in Sportnco of EUR 19.2m and there will be an earn-out of up to EUR 23m based on the Sportnco performance in 2022 and 2023.

GiG has also entered into an agreement with SkyCity Entertainment Group Ltd, whereby SkyCity will, subject to final completion of the acquisition, invest EUR 25m (USD 28.27m) in GiG through a directed share issue at NOK 18.00 per share, that will finance the main part of the cash consideration.

Closing is expected in February 2022 and is subject to necessary approvals from relevant gaming authorities, shareholder approval to increase the authorised shares in GiG, bondholder approval on the rollover of loans in Sportnco, and final approval by GiG's board of directors.

Sportnco is an independent sports betting and iGaming business with international presence in Europe, South America and the US through a combination of tier 1 clients and strong local players.

SkyCity Entertainment Group Ltd. is New Zealand's largest tourism, leisure and entertainment company and is dual listed on the New Zealand and Australian...

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