Gaming Innovation Group completes acquisition of KaFe Rocks

21 December 2023

(PRESS RELEASE) -- Gaming Innovation Group Inc. is pleased to announce the successful completion of its acquisition of KaFe Rocks Ltd., a prominent affiliate leader in the iGaming industry, ref. announcement from GiG on 7 November 2023. This strategic move positions GiG’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 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, 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 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."

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 may issue MEUR 2.5 in GiG 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 share at the time of closing. KaFe Rocks’ assets will be consolidated as of today.

Related Links
Gaming Innovation Group

Global Gaming Expo (G2E)
The largest gathering of global, commercial and tribal gaming professionals in North America.
Mondogaming SRL
A leading software provider for sportsbook platforms, projected in the B2B and B2C business
Casino Web Scripts
Providing certified casino software & casino games with no monthly fees.Custom development available
Launch your online betting site w/ the latest technologies on IGPIXEL's advanced iGaming platform
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Your Guide to 3,577 iGaming Industry Suppliers
ADD YOUR COMPANY   |   ABOUT US     linkedin Twitter Facebook