Gaming Innovation Group has cited lofty North American ambitions as a prime factor in the group re-entering the M&A arena, with the Malta headquartered firm’s latest purchase being that of Time2Play Media, formerly known as KaFe Rocks.
The €35m acquisition is charged with cementing a “position as the dominant lead generator within the lucrative online casino market”, as well as accelerating its rate of expansion across the aforementioned jurisdiction.
This represents a follow up to January’s €45m AskGamblers addition, which was gained after Catena Media launched a strategic business review.
Time2Play Media on the other hand saw a sale to Glitnor Group fall by the wayside at the eleventh hour towards the end of 2022. This decision was said to have been made “after much deliberation,” with it added that “given market conditions” it was deemed that “now is not the time to fully complete the acquisition”.
The company’s GiG Media division is aiming to “drive substantial growth” for its new asset, in addition to leveraging its proprietary media and marketing technology and driving “solid cost synergies” to maximise profitability.
“We want to remain the leading casino affiliate in the industry and grow in the North American market. Our acquisition of KaFe Rocks validates these goals,” stated Jonas Warrer, CEO of GiG.
“After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family. In KaFe Rocks, we’ve found a flourishing business led by an exceptionally skilled team.
“Their reputable affiliate assets will undoubtedly drive growth for the broader group. I eagerly await working closely with the KaFe Rocks team.”
The aforementioned purchase price comprises a €15m upfront cash payment, as well as €20m in four semi-annual payments over 24 months and an added earn-out if specific performance targets are met. GiG will also pay €2.5m in shares subject to specific operational cost savings targets.
Closing of the purchase of Time2Play Media, whose entities include US-facing flagship brands Time2play and USCasinos, is expected next month, subject to completion of due diligence, financing, applicable regulatory approvals, and final board approval.
It is thought that the group will generate minimum revenue of €23m in 2024, with an EBITDA margin above 45 per cent. This is expected to increase over the coming years.
In addition, it is also anticipated that the investment will accelerate GiG Media revenues to between €125m-€135m for 2024.
Aimee Speight, spokesperson for KaFe Rocks, added: “It’s a momentous occasion for KaFe Rocks to join forces with GiG Media.
“We considered several buyers but were persuaded to go with GiG Media based on the strong performance the company has shown over the last few years. Joining GiG Media, we are optimistic about seeing KaFe Rocks business venturing into new heights.”