GiG, a prominent player in the online gaming industry, is set to acquire the KaFe Rocks affiliate group in a deal valued at €35 million.
This acquisition comprises a substantial €15 million upfront cash payment. KaFe Rocks boasts a diverse portfolio of over 30 brands operating in more than 20 markets, featuring well-known names like Time2Play and USCasinos.
This strategic move follows GiG’s acquisition of AskGamblers a year ago and is aimed at strengthening GiG Media’s presence in the online casino affiliation space, particularly in the lucrative North American market.
As part of the acquisition, the KaFe Rocks group will be divided into two distinct entities, GiG Media and Platform & Sportsbook, with this restructuring scheduled for completion in the first half of 2024.
GiG’s overarching goal with this acquisition is to accelerate the diversification of GiG Media’s business, aligning with its strategic imperative of mitigating overall risk by expanding its customer base, online assets, and market reach to stimulate revenue growth.
The synergies between the two entities are expected to yield a minimum revenue of €23 million in 2024 for the KaFe Rocks assets, with an impressive EBITDA margin exceeding 45%, translating to a 2024 EV/EBITDA multiple of approximately 3.6x for the acquisition.
Jonas Warrer, CEO of GiG, expressed his enthusiasm about this strategic move, emphasizing GiG’s ambition to maintain its position as a leading casino affiliate and expand its footprint in the North American market.
He highlighted the potential of KaFe Rocks and its skilled team, aiming to integrate it into the GiG family to unlock additional business value for partners and investors.
KaFe Rocks welcomed the acquisition with optimism after a takeover bid by Glitnor Group had fallen through earlier in the year.
Aimee Speight, a spokesperson for KaFe Rocks, praised GiG Media’s strong performance and expressed confidence in their partnership leading to new heights for KaFe Rocks’ business.
This acquisition comes after KaFe Rocks rebranded itself as Time2Play Media in June, although it will continue to operate under the KaFe Rocks Ltd name.
GiG’s acquisition strategy has been active, with the recent completion of the AskGamblers purchase and the split of the group into GiG Media and Platform & Sportsbook divisions, aimed at enhancing focus and efficiency within the organization.