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By Ralph Trayfalgar, Updated:
GIG said it has secured all of the required regulatory permissions to complete its EUR51.37 million (NZ$81.3 million) acquisition of Sportnco Gaming. GIG said it expects to close the transaction this month.
The corporation will pay EUR 27.87 million in cash and EUR 23.50 million in new GiG shares, at a price of NOI 18.08 per share, in exchange for the GiG shares.
GiG signed an agreement with New Zealand's SkyCity Casino in December of last year, under which the operator agreed to invest EUR25 million in GiG through a direct share issuance to the company. This transaction serves as the primary source of funding for the Sportnco cash section of the bid.
The company's in-house built sportsbook and PAM, according to GiG, distinguishes it as one of the top platform suppliers of turnkey betting and gaming solutions for operators in regulated markets worldwide. GiG's position as one of the industry's top gambling platforms and media providers will be enhanced and strengthened as a result of the merger.
“It is with tremendous excitement that we now step forward into the next chapter in GiG’s history," remarked Richard Brown, the company's CEO. “The team at Sportnco has built a tremendous business, one that is highly complementary to GIG’s offering both in real money casino product but also addressable market increase, and now the work begins to realize the truly existing growth opportunities that the business combination can pursue.
“We welcome both the owners of Sportnco & SkyCity as shareholders and the staff of Sportnco into the GiG organization and now move forward with full focus on the execution of the post-merger integration plan.”
Following the completion of GiG's acquisition of Sportnco Gaming, SkyCity informed on Monday that it has officially completed its EUR25 million equity investment in the company, which was announced in June. Michael Ahearne, the chief executive officer of SkyCity, is now expected to join the board of directors of GiG.
"We are excited to have completed the equity investment and to expand on our strategic partnership with GiG," Ahearne said in a statement following the news release. “GiG delivered a strong FY21 result and has a positive outlook, particularly following the acquisition of Sportnco – a transformational acquisition.
“SkyCity looks forward to supporting GiG’s future success as a strategic shareholder and through participation on the GiG board. SkyCity is committed to pursuing the omnichannel opportunity in New Zealand and the partnership with GiG will help us deliver on that vision.”