Gaming Innovation Group Inc. (GIG) has – through its subsidiary GIG Media (formerly Innovation Labs) – agreed to acquire the technology driven Danish performance marketing company Rebel Penguin for a total consideration of EUR 13 million. With the highly competitive and proprietary technology of Rebel Penguin GIG Media enters the paid media space reaching distribution channels such as Facebook and Google. This acquisition positions GIG Media as a 360-degree digital marketing company present in all major channels.
Important step enhancing GIG sports betting capabilities ahead of the 2018 World Cup
Since its foundation in 2007, Rebel Penguin (RP) has generated more than 155,000 paying customers for sports betting clients in the UK & the Nordics. As such, the acquisition is an important milestone in GIG’s strategy in order to enhance its sports betting capabilities ahead of the 2018 World Cup. RP hasn’t entered the casino market yet, where GIG has a leading and rapidly growing presence. Thus, the casino segment represents an attractive and untapped potential.
RP will provide an increased volume of new players to GIG’s eco-system and will be of benefit to all of GIG’s business areas. RP’s in-house affiliate agency will add valuable technological and strategic knowledge to GIG’s B2C gaming operators and its B2B operations. Cost synergies are estimated to reach at least EUR 1 million per year. In addition, Rebel Penguin will add significantly to GIG’s revenues.
Rebel Penguin’s annual revenue run-rate is approximately EUR 6.8 million, with a corresponding EBITDA of approximately 2.3 million. Rebel Penguin is based in Copenhagen with more than 30 employees. All staff will be retained.
Robin Reed: This milestone strengthens our position across three main areas
CEO of GIG, Robin Reed comments: “This is another milestone for GIG Media. Through this acquisition, we will reach millions of monthly ad placements throughout major distribution channels such as Facebook and Google. We strengthen our position in three main areas: paid media, regulated markets and sports betting. For sports betting operators, we increase our traffic driving capability significantly. Finally, we bolt on Rebel Penguin’s proprietary technology to our platform and add 30 highly competent marketers.”
The acquisition will be settled with EUR 9.1 million in cash and the balance in 7,165,000 GIG shares. The shares will have 12 months’ lock-up. GIG will use its treasury shares, and the outstanding number of shares in GIG, 896,656,266, will not be changed following the transaction. GIG will decrease its holding of treasury shares from 7,165,000 to zero, or from 0.80 % to 0 % of the outstanding shares. Closing is expected in September 2017.
GIG’s subsidiary GIG Media is a fast-growing online marketing company for iGaming. It refers paying users to B2B clients primarily on perpetual revenue share agreements. It sources these paying users by obtaining competitive rankings for high-value keywords in search engines through SEO (search engine optimization), generating traffic to owned websites. These websites have guides and quality content for the gaming industry and serve as gateways to operators. GIG Media also refer paying users through data driven media buying techniques.
For further information, contact:
Robin Reed, CEO, +356 9999 0382,
About GIG: Gaming Innovation Group Inc. is an emerging gambling solutions and interactive entertainment provider. The Company offers cutting-edge cloud-based services and B2B performance marketing, and owns B2C gambling operators offering games from the best-of-breed suppliers across the online sports betting and casino industry. Gaming Innovation Group operates out of Malta and is listed on the Oslo Stock Exchange under the ticker symbol “GIG”.
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