GIG to Become Scandinavia’s Leading Affiliate Marketer
by Glenn Baird - July 20, 2017
In a deal worth 26 million Euros, Gaming Innovation Group (GIG) have through their subsidiary, Innovation Labs bought over Scandinavian network, Stk Marketing Ltd. This is GIG’s fourth high profile acquisition of the year and will make the company the leading affiliate in Scandinavia.
GIG have stated that they believe the deal will see them earn more than 7 million Euros before interest, tax, depreciation and amortization (EBITDA) within the first year. 70% of those earnings will derive from already existing revenue within Stk Marketing Ltd. This sum will contribute heavily to the projected 13 million Euros that all four of 2017’s acquisitions are expected to generate.
Earlier this year GIG struck a deal to acquire Casinotopsonline.com, a successful online casino guide for 11.5 million Euros. Up until now this was the most expensive acquisition in the company’s history. Along with a sizeable 5.2 million Euro buyout of a Central European sportsbook affiliate, 2017 has proved to be a very productive year for GIG so far.
Robin Reed, GIG Group Chief Executive said:
“We have set an ambition for Innovation Labs to become the largest lead generation business in iGaming and we are well underway in realizing this. Furthermore, we have now established a leading position in the Nordic affiliate market. In line with previous acquisitions and GIG´s vision, the Stk acquisition will enable Innovation Labs to refer more customers to our B2B partners and thus benefit all parties engaged in the expanding GIG iGaming eco-system.”
Much of the money being used by Gaming Innovation Group to make these acquisitions was raised in February of this year through a secured bond issue that totalled £37 million. At the time the company made it perfectly clear that this money would be used to fund buyouts within the market.
Robin Reed stated that:
“The proceeds from this bond placement will allow us to acquire and invest into marketing businesses and distribution channels. This will greatly increase our traffic driving capability to our rapidly expanding eco-system. More volumes will benefit all the stakeholders with advantages of scale.”
With this in mind it’s quite likely that we’ll see more buyouts from GIG before the end of 2017.