Gaming Innovation Group Incorporated Completes Acquisition of KaFe Rocks Limited, Solidifying Leadership in Casino Affiliation

Gaming Innovation Group (GiG) Incorporated is pleased to announce the successful completion of its acquisition of KaFe Rocks Limited, a prominent affiliate leader in the iGaming industry, ref announcement from GiG Incorporated on November 7, 2023. This strategic move positions GiG Incorporated’s media division, GiG Media, as the dominant force in online casino affiliation and reinforces the business’ foothold in the lucrative North American market.

Building on the success of the AskGamblers acquisition, GiG Media is poised to drive substantial growth for KaFe Rocks Limited assets post-acquisition, leveraging its proprietary media and marketing technology. The synergies between the two entities are expected to result in a minimum revenue of MEUR 23 in 2024 for the acquired KaFe Rocks Limited assets with an EBITDA margin exceeding 45%, translating to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition.

Jonas Warrer, Group Chief Executive Officer for GiG Incorporated, expressed his satisfaction with the completion of the acquisition, stating: “Our goal is to maintain our position as the leading casino affiliate in the industry and to expand further in the North American market. The inclusion of KaFe Rocks Limited aligns perfectly with these objectives. We’ve identified a thriving business led by an exceptionally skilled team. We eagerly anticipate integrating KaFe Rocks Limited into the GiG Incorporated family, unlocking additional business value to benefit our partners and investors.”

The acquisition will further accelerate the diversification of GiG Media’s business, a key strategic goal for the company, mitigating overall risk by having more customers, websites and markets to drive revenue growth going forward.

The transaction, valued at MEUR 35, includes a MEUR 15 upfront cash payment and MEUR 20 distributed in four semi-annual payments over 24 months. Additionally, GiG Incorporated may issue MEUR 2.5 in GiG Incorporated shares to the sellers in Q1 2024, subject to specific operational cost savings targets being met by year-end 2023, where the number of shares to be issued shall be based on a 30-day VWAP of the GiG Incorporated share at the time of closing. KaFe Rocks Limited’s assets will be consolidated as of today.