Gaming Innovation Group completes KaFe Rocks acquisition

Gaming Innovation Group (GiG) has completed the acquisition of online casino affiliate KaFe Rocks for €35 million.

The acquisition was agreed in November and further diversifies the company’s GiG Media division, particularly in the North American market through the Time2play.com and USCasinos.com brands.

Building on the success of the AskGamblers acquisition, GiG Media aims to drive substantial growth for KaFe Rocks post-acquisition, leveraging its proprietary media and marketing technology.

Synergies between the two entities are expected to result in a minimum revenue of €23 million in 2024 for the acquired KaFe Rocks assets, with an EBITDA margin exceeding 45 per cent, translating to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition.

“Our goal is to maintain our position as the leading casino affiliate in the industry and to expand further in the North American market,” said GiG chief executive Jonas Warrer. “The inclusion of KaFe Rocks aligns perfectly with these objectives.

“We've identified a thriving business led by an exceptionally skilled team. We eagerly anticipate integrating KaFe Rocks into the GiG family, unlocking additional business value to benefit our partners and investors."

The transaction includes a €15 million upfront cash payment and €20 million distributed in four semi-annual payments over 24 months.

Additionally, the company may issue shares worth €2.5 million to the sellers of KaFe Rocks in the first quarter of 2024, subject to specific operational cost savings targets being met by year-end 2023.

Shares in Gaming Innovation Group Inc (OSL:GIG) were trading at NOK29.50 per share in Oslo Thursday morning.