Gaming technology solutions provider Gaming Innovation Group has completed the acquisition of KaFe Rocks Ltd, described by the firm as a “prominent affiliate leader in the igaming industry”. The decision to acquire KafeRocks was first announced by GiG on 7 November 2023.
Confirming the news in a statement today, GiG said that the strategic move positions its media division, GiG Media, as “the dominant force in online casino affiliation and reinforces the business’ foothold in the lucrative North American market”.
The transaction, valued at MEUR 35, includes a MEUR 15 upfront cash payment and MEUR 20 to be distributed in four semi-annual payments over 24 months. Additionally, GiG may issue MEUR 2.5 in its shares to the sellers in Q1 2024.
That, however, will be 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 share at the time of closing. KaFe Rocks’ assets will be consolidated as of today.
Building on the success of the AskGamblers acquisition, GiG Media claimed it is poised to drive substantial growth for KaFe Rocks’ 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 assets, with an EBITDA margin exceeding 45%, translating to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition.
Jonas Warrer, Group CEO of GiG, stated: “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 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.”
