Gaming Innovation Group Inc. (GiG) signed a Share Purchase Agreement (SPA) with Betsson Group (Betsson) for the divestment of GiG’s B2C assets, ref. announcement on 14 February 2020. The deal has yesterday been formally approved by antitrust regulators allowing the transaction to be completed mid-April 2020.
Betsson will pay EUR 33 million on closing, including EUR 2 million for the cash deposit securing GiG’s Spanish casino license. GiG will use part of these proceeds to repay the Company’s SEK 300 million 2017 – 2020 bond, strengthening the balance sheet and significantly reduce the financial leverage ratio.
The sale of the B2C vertical is a result of GiG’s strategic review to reduce complexity and improve efficiency. By divesting the B2C vertical, GiG will free up resources, enabling full dedication on driving and growing its B2B business, securing stable and sustainable earnings and profit margins. GiG sees a large and sustainable addressable market for its platform business as the regulation of the iGaming industry continues and is well positioned with the omni-channel platform offering to capitalise on the continued digital transformation of the worldwide gambling market.
For more details on the transaction, see announcement on 14 February 2020.