Gaming Innovation Group completes acquisition of Sportnco

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Gaming Innovation Group Inc. on 22 December 2021 signed a Share Purchase Agreement (“SPA”) to acquire the iGaming company Sportnco Gaming SAS. GiG has received the necessary approvals from the relevant authorities, and GiG’s Board of Directors has resolved to complete the acquisition, by issuing new shares to Sportnco’s shareholders and to SkyCity Entertainment Group Limited (“SkyCity”).

GIG acquired 100% of the shares in Sportenko Gaming SAS for a consideration of €51.37 million, of which €27.87 million is paid in cash and €23.50 million is paid out in 12,623,400 new shares in GIG at a share price of NOK 18.08 Which is equivalent to VWAP. of GiG shares for the last ten trading days. In addition, Sportenko will retain €18.63 million of its existing long-term debt.

GiG also entered into an agreement with SkyCity in December 2021, whereby SkyCity will invest €25 million in GiG through a directed share issue at 18.00 NOK per share, which is equivalent to 13,487,500 new GiG shares, which will be paid in cash to shareholders. Funds the main part of the consideration. Sportenko.

GiG issued 26,110,900 new shares to shareholders of Sportnco and SkyCity, increasing the number of outstanding shares from 96,675,626 to 122,786,526. Shares issued to the shareholders of Sportenko are subject to a lock-up period of 6 months.

Sportnco has 84 shareholders, the largest of which are its CEO and founder Hervé Schlosser (15.6%), Olivier Marchal, President of Bain & Co. France (9.1%) and BNP Paribas Development (6.6%), and these include 1.60%, 0.93% and 0.67 stake. % respectively in GIG. Skycity will hold 10.98% stake in GIG.

In addition, Sportnco shareholders are entitled to two-year earnings based on performance in 2022 and 2023 of up to €11.5 million per year. 50% of the earnings will be paid in cash and 50% in new shares in GiG, where the number of shares to be issued will be based on the 10-day VWAP of the GiG share, expected in April, at the time of payment. 2023 and April 2024. In addition, to keep key employees in Sportnco, a 3-year options program will be initiated, whereby option holders, pending employment, will receive shares in GIG up to their total value at future VWAP valuations. €4 million.

joint company

Sportenko is one of the leading platform providers of turnkey betting and gaming solutions for operators in regulated markets through its in-house developed sportsbook and PAM. The combined company will enhance and strengthen GIG’s position as one of the industry’s leading platforms and media providers with innovative and proprietary products and the largest and largest in regulated iGaming with a unique regulated geographic footprint. One of the fastest growing providers.

Sportnco has an international presence and operates as a major B2B supplier in France and Spain and is active in other European jurisdictions such as Belgium, Portugal and Greece, as well as in several high-growth Latin American markets and for entering US sportsbooks. is in good condition. major states. Sportenko’s geographic presence is highly complementary to GIG’s current offering and combined, GIG and Sportenko will be licensed in 25 markets, currently having approximately 55 customers. Through the acquisition, GiG has grown significantly in the short- and long-term addressable markets. Sportnco’s Tier 1 sportsbook product is robust, and the acquisition is expected to create attractive commercial, operational and technical synergies, as well as enable cost savings and accelerated growth.

The combined company will have increased profitability, value proposition with increased growth potential and further diversification of revenue and geographic reach.


With the acquisition of Sportnco, GIG strengthens its position in the platform and sports segment of the iGaming industry and will have many opportunities to grow by expanding its product portfolio towards a profitable and cash-generating business segment. GiG’s Media Services has seen a strong performance over the past two years, delivering high growth levels, increased earnings diversity and healthy cash flow. For the full year 2022, the combined operations should generate revenue of €87–93 million, with an EBITDA of €30–35 million. The Board of Directors will have a strong focus on overall operations, including the post-merger amalgamation of Sportenko, and will continue to consider potential strategic options to advance shareholder value.

GIG CEO Richard Brown said: “It is with tremendous enthusiasm that we now move on to the next chapter in the history of GiG. The team at Sportenko has built a tremendous business that is highly complementary to GIG’s offering in product but also addresses growth in the market, and now work begins to really realize the existing growth opportunities. Who can pursue business combination. We welcome Sportnco and SkyCity as shareholders and employees of Sportnco to the GIG organization and now move forward with full focus on the execution of the post-merger integration plan.,

Hervé Schlosser, Sportnco CEO and Founder, said:Along with all the teams and stakeholders that have built the success of Sportenko and Technalis, we are extremely proud of the journey we have accomplished since 2008 and our integration into the GIG Group today. I look forward to opening this new chapter as I believe that together we will bring robust technology solutions to our clients in increasingly regulated markets.,

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