Gaming Innovation Group (GiG) has set out to acquire affiliate specialist KaFe Rocks in a new EUR 35 million (approximately $37.4 million) acquisition deal. The deal will solidify GiG Media’s position as a lead generator in the iGaming market and will expand the company’s presence in the lucrative North American casino sector.
Under the agreement, GiG will pay EUR 15 million in cash once it closes the deal. The rest of the money will be paid out in four semi-annual installments over the next two years. The latter payments will depend on certain performance targets. GiG will also pay EUR 2.5 million in shares subject to specific operational cost-saving targets.
KaFe Rocks is a major iGaming affiliate with a portfolio spanning over 15 markets. The company is behind Time2play.com and USCasinos.com, two US-oriented affiliate brands. Time2Play has been demonstrating spectacular growth, making it a valuable asset for GiG.
GiG Media remains committed to growing the acquired assets and maximizing their profitability. KaFe Rocks is expected to generate revenue of EUR 23 million in 2024 with an EBITDA margin of over 45%.
The acquisition is expected to close in December 2023 and is still subject to regulatory approvals.
A Momentous Occasion for KaFe Rocks
Aimee Speight, a KaFe Rocks spokesperson, commented on the agreement, calling it a “momentous occasion.” He said that his team considered several buyers but was eventually persuaded to pick GiG Media because of its impressive performance.
For reference, GiG has continued to post record-breaking results for 12 quarters in a row. Speight added:
Joining GiG Media, we are optimistic about seeing Kafe Rocks business venturing into new heights.
Aimee Speight, spokesperson, KaFe Rocks
Jonas Warrer, GiG’s newly appointed chief executive officer, also commented on the agreement, expressing his desire to cement GiG as the leading casino affiliate in the industry. He said that the acquisition of KaFe Rocks “validates these goals.”
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.
Jonas Warrer, CEO, GiG
In other news, GiG just published its Q3 results, reporting another quarter of robust revenue growth across core verticals.