GAMING INNOVATION GROUP SUBSIDIARY IN ANOTHER SIGNIFICANT AFFILIATE ACQUISITION
10th March, 2017 at 19:59:37
Euro 11.5 million paid for affiliate marketing website Casinotopsonline.
GIG's online marketing subsidiary Innovation Labs has announced an agreement to acquire affiliate website Casinotopsonline.com for a consideration of Euro 11.5 million - the company's largest acquisition to date as it moves to strengthen its position in Europe.
The acquisition includes the website Casinotopsonline.com and all related assets. Current yearly revenue run-rate of the acquired assets is approximately Euro 3 million, with an EBIT margin in excess of 90 percent.
In a GIG group statement Friday, the company said that the Casinotopsonline acquisition further enhances Innovation Labs' position outside Scandinavia and in regulated markets such as the UK.
GIG expect to increase revenues from Casinotopsonline.com by 25% short term, with a significant long term potential through including the website in Innovation Labs operations which will generate cost and revenue synergies.
Casinotopsonline.com is expected to increase annual referred FTD's by around 25,000, and the products will be integrated into Innovation Labs own proprietary systems.
GIG CEO Robin Reed said the acquisition will be paid in part from the proceeds of the recent successful bond placement by the group and is subject to satisfactory due diligence and final board approval.
"The aim of GIG is to build the largest distribution network in iGaming for our clients and suppliers, creating an eco-system for iGaming," Reed said. "This acquisition is our largest in the affiliate space so far tand will significantly increase our traffic driving capability.
"More so it was done facing stiff competition, at an attractive multiple of four on current revenue run-rate, excluding potential cost and revenue synergies."
Casinotopsonline chief exec Mihail Todorov, added: "I am very excited about GIG taking this product further, and look forward to help them achieve the goals and vision for this unique project".
The GIG statement also reveals that its mid-February mystery affiliate asset acquisition has now been completed, and the undisclosed affiliate network assets from an international affiliate firm are now within the GIG group; all the conditions for completing the transaction have been fulfilled, and closing has taken place.
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