Online gambling group Gaming Innovation Group (GIG) today announced the acquisition of Stk Marketing Ltd., an affiliate network targeting players from the Nordic Region, for the approximate amount of €26 million.
This has been GIG’s fourth affiliate acquisition deal this year and has further helped the group to establish itself as one of the leaders in the Nordic affiliate marketing field. The purchase deal has been negotiated through GIG’s subsidiary Innovation Labs.
The iGaming group said in a press release from earlier today that it expects Stk Marketing’s acquisition to bring EBITDA of more than €7 million in the first year after the deal’s closure. More than two-thirds of that EBITDA is likely to be generated from revenue share agreements, the company pointed out.
Commenting on the latest transaction, GIG CEO Robin Reed said that growing Innovation Labs into the biggest iGaming lead generation business has been a goal of theirs and they are very close to realizing it. Of the other benefits they are to reap from the addition of Stk Marketing to their growing portfolio, the executive highlighted the fact that the company is among the leading managers of affiliate networks in the Nordics, which will offer GIG the opportunity to refer even more iGaming customers from the region to its B2B partners.
Proceeds from GIG’s bond made earlier this year will be used to cover the acquisition cost. The transaction is subject to due diligence and is yet to be approved by the company’s board. It is expected to be completed sometime next month.
GIG said that all four affiliate acquisitions from this year are poised to generate a total of €13 million in EBITDA during the first year after the deals’ closures.
GIG, based in Malta but originating from the Nordics, began its 2017 shopping spree in February when it announced the acquisition of an undisclosed affiliate network for €3.5 million. In March, the company added casino affiliate website Casino Tops Online to its portfolio, paying €11.5 million to close the deal. The €5.7-million acquisition of a Germany, Austria, and Switzerland-facing sportsbook affiliate network was announced next.
All four purchases were made through GIG’s Innovation Labs subsidiary. They were made possible after the successful placement of SEK400 million senior secured bonds in February. GIG has confirmed that proceeds will be used to fund various acquisitions, mainly ones in the iGaming affiliate space.
Today’s acquisition deal represents Innovation Labs’ largest one since its establishment as GIG’s lead generation arm and one of the largest in the overall online gambling affiliate space to date.
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