Oslo-listed Gaming Innovation Group (GiG) has signed an agreement to sell its B2C brand Highroller to Ellmount Gaming for €7m.
Highroller was launched by GiG in December 2017 and contributed revenue of €1.4m during the first half of 2019, with a negative EBITDA of €0.2m.
Highroller will initially operate under GiG’s existing license through a long-term white label agreement, and is expected to be migrated to Ellmount Gaming’s license following regulatory approval.
Ellmount Gaming, which also operates the CasinoRoom.com brand, will become a B2B customer of GiG and continue to operate Highroller using GiG’s platform services, front end solution and managed services.
The divestment is part of GiG’s strategy to increase focus on its leading casino brand Rizk.com, which currently represents 71 per cent of GiG’s B2C revenue. The second largest brand, Guts, is being further developed as a sports betting brand.
“The sale of Highroller is a confirmation of our discipline and focus as we are growing Rizk.com to become a Tier 1 casino operator in select markets,” said GiG chief executive Robin Reed. “Through this agreement, we gain increased cash flow, a strong B2B partner and Highroller will get the marketing muscle and focus it deserves.
“The brand was launched only two years ago and with this sale, it has returned three-digit ROI for GiG. I am looking forward to seeing the brand prosper in the hands of very capable owners, empowered by our full suite of products and services.”
Shares in Gaming Innovation Group Inc (OSL:GIG) were trading down 1.90 per cent at NOK11.38 per share in Oslo Tuesday morning.