Proposed transformational acquisition of 80% stake in 888Africa will add recurring revenue to GiG’s core B2B business
GiG Software has entered into an agreement to acquire a majority 80 per cent stake in 888Africa from London-listed betting and gaming operator evoke.
The proposed consideration is valued at €16.4 million, comprising an initial consideration of €6.0 million and a deferred consideration of €10.4 million.
The acquisition is being funded through a mix of equity and convertible debt with existing shareholders, subject to final approvals and signature of a share purchase agreement.
888Africa’s incumbent management team will retain the remaining 20 per cent stake in the business.
To fund the acquisition, GiG has carried out a directed share issue, represented by Swedish Depository Receipts (SDRs) to existing shareholders, and entered into convertible loan agreements to raise a combined €8.5 million.
The subscribers in the share issue consist of existing shareholders, including the company’s largest shareholders, the MJ Foundation, ZJ Foundation, and CEO Richard Carter. The lenders under the convertible loan agreements include Carter, Myrild AS, and Nalavio Limited.
888Africa is a cash-generative and profitable B2C operator currently live across multiple African markets including Mozambique, Angola and Tanzania, growing from start-up in late 2022 to a run rate of approximately $50 million of annualised net gaming revenue (NGR).
The operator delivered 19 per cent quarter-on-quarter revenue growth and 30 per cent year-on-year growth in the second quarter, with EBITDA margin expanding as cost actions took effect, generating over $1 million of net cash in Q2 2026 alone.
“Following the completed acquisition, which we estimate will occur by the end of September, our priority will be disciplined integration of 888Africa and recurring revenue growth within the core business, rather than pursuit of a high volume of new opportunities,” said GiG Software CEO Richard Carter in the company’s second quarter results announcement earlier Wednesday.
“This means a more measured pace of standalone top line growth in the near term, a deliberate trade-off in favour of a leaner, more sustainable and cash generative core business alongside a high growth, high margin African platform.
“We believe this combination will sharpen our focus, concentrating our resources on a defined portfolio of partners and, supported by deeper operator and product expertise from the 888Africa team, allow us to deliver a higher quality, more responsive and more tailored service to our customers.”
Post-acquisition, GiG anticipates combined revenue of between €44 million and €48 million for 2026, and adjusted EBITDA of between €5 million and €7 million, assuming a full contribution from 888Africa for Q4 2026.
Shares in GiG Software plc (STO:GIG-SDB) were trading marginally lower by 0.28 per cent at SEK1.72 per share in Stockholm earlier Wednesday.