The leading iGaming solutions provider Gaming Innovation Group Inc. (GIG) officially announced that it is carrying on with its European affiliate expansion. The company and its Innovation Labs subsidiary are to acquire a greatly reputable affiliate network that is primarily aimed at sportsbook players in the region of Germany, Switzerland and Austria (the so-called DACH region).
According to GIG’s announcement, the total consideration prize of the takeover is estimated to €5.7 million. The transaction is subjected to approval of the company’s board, and the deal is expected to be closed in June 2017.
The Chief Executive Officer of Gaming Innovation Group Robin Reed commented on the expansion announcement, saying that the company was focused on making its subsidiary Innovation Labs the largest and most successful generation business in the online gaming industry. Mr. Reed said that the acquisition would provide the company with the chance to enter the DACH markets, which according to him could be re-regulated over the upcoming years and shared that was the main reason why these were the markets GIG and its subsidiary were primarily focused on.
GIG’s boss also added that thanks to the takeover deal, Innovation Labs would be able to reach more German-speaking customers and refer them to their business-to-business partners.
The affiliate network to be acquired includes a network of sportsbook websites, along with their related assets, IP and affiliate accounts. As mentioned above, the network is focused especially on sportsbook players, by providing them with both betting tips and reviews of upcoming sporting events. Up to date, the annual revenue run-rate of the assets to be taken over is estimated to about €1.4 million, and a stable EBIT margin amounting to more than 85%.
Thanks to the takeover, GIG and its subsidiary would get the desired expansion to one of the largest markets on a global scale, which would greatly strengthen the sports-betting assets of Innovation Labs. The addition of the affiliate network acquisition is expected no less than another 5,000 high value First Time Depositors over the upcoming 12-month period. The integration of the affiliate network is to be carried out by using the BI/Data proprietary systems and marketing platforms of the Innovation Labs subsidiary.
The Innovation Labs subsidiary of Gaming Innovation Group is a fast-growing online marketing company operating in the online gambling sector. It refers paying users to its business-to-business partners.
GIG, on the other hand, is responsible for creating and distribution some of the most valuable knowledge in the iGaming industry. The company has been recently focused on reaching global expansion. Apart from some partnership agreements, it has recently announced that the UK Gambling Commission had granted it with a sports betting license, allowing it to expand its presence in the UK. Now, the addition of the affiliate network would give it the opportunity to reach more European customers and strengthen its presence there.
- Author
Olivia Cole
