Gaming Innovation Group to Acquire KaFe Rocks in $37.4 Million Deal
Date: 2023-11-08 Author: Dima Zakharov Categories: EVENTS
Gaming Innovation Group (GiG) has made headlines in the gaming world by announcing its plans to acquire the renowned iGaming affiliate specialist, KaFe Rocks, in a substantial €35 million deal. This acquisition is expected to have a significant impact on the iGaming market and expand GiG's presence in the highly lucrative North American casino sector.
A Win-Win Deal for GiG and KaFe Rocks
Under the terms of the agreement, GiG will pay €15 million in cash upon the completion of the deal, with the remainder of the funds to be disbursed in four semi-annual installments over the next two years, contingent upon achieving certain performance targets. Additionally, GiG will allocate €2.5 million in shares, subject to specific operational cost-saving objectives.
KaFe Rocks is a major player in the iGaming affiliate space, with a diverse portfolio spanning more than 15 markets. The company is responsible for popular US-focused affiliate brands, Time2play.com and USCasinos.com. Among these, Time2Play has shown remarkable growth, making it a highly valuable asset for GiG.
GiG Media is fully committed to growing its newly acquired assets and optimizing their profitability. KaFe Rocks is anticipated to generate a revenue of €23 million in 2024, boasting an EBITDA margin exceeding 45%.
The acquisition is scheduled to be finalized in December 2023, pending regulatory approvals.
A Landmark Achievement for KaFe Rocks
Aimee Speight, a spokesperson for KaFe Rocks, expressed excitement about the deal, describing it as a "momentous occasion." He explained that, after considering various potential buyers, they were ultimately convinced to choose GiG Media due to its outstanding track record.
Notably, GiG has consistently achieved record-breaking results for 12 consecutive quarters, emphasizing the attractiveness of this partnership.
Jonas Warrer, recently appointed as GiG's CEO, also voiced his enthusiasm for the acquisition, aiming to establish GiG as the leading casino affiliate in the industry. He stated that the acquisition of KaFe Rocks "validates these goals."
"We've identified a thriving business in KaFe Rocks, led by an exceptionally skilled team. Their reputable affiliate assets will undoubtedly fuel growth for the broader group. I eagerly anticipate working closely with the KaFe Rocks team," added Jonas Warrer.
In other news, GiG recently released its Q3 results, showcasing robust revenue growth across its core verticals, further solidifying its position in the gaming industry.
