Swedish betting firm Betsson has announced that they've come to an agreement with Gaming Innovation Group to purchase the company's Rizk, Guts, Kaboo, and Thrills casino brands for an initial investment of €31 million.
The deal will see Betsson buying the Business to Consumer branch of GiG, which is known as Zecure. The agreements includes the front-end and middleware technology, gaming licenses, operations, and all business assets tied to the brands. For Betsson, the deal will help strengthen their operating brand in more markets, as they're currently strongest in the Nordic markets. GiG's brands are operational globally, as the company holds licenses in Malta, the UK, Spain, and more.
To secure the deal, Betsson will pay €22.3 million in cash, and will also pay a platform fee on net gaming revenues generated. There's also a provision that will see Betsson keeping the brands operational on the GiG platform for at least 30 months. The platform fee is hefty, with €8.7 million being paid up front, but could reach €15 million moving forward.
Commenting on the deal Betsson CEO Pontus Lindwall said, "Betsson's ambition is to outgrow the market in the long term, organically and through acquisitions. This acquisition confirms that Betsson is a driver of the consolidation of the market. We believe this deal offers a good opportunity for Betsson to consolidate, at good value, where we can create synergies and apply our core B2C skills and marketing insights to scale these assets to their true potential."
GiG CEO Richard Brown added: I am very excited about this transaction as it provides multiple upsides to GiG. While putting the company in a financially sustainable position, it gives us the ability to focus on where we see real long-term shareholder value."