Leading iGaming technology company that offers solutions, products, and services to operators Gaming Innovation Group (GiG) has inked an important acquisition deal with Catena Media Plc. The latter had agreed to sell its two wholly owned subsidiaries located in Serbia and Malta that are responsible for operating the AskGamblers brand and associated online casino brands NewCasinos and JohnSlots. The two brands agreed to seal the deal for €45 million which will be paid in cash in three tranches in the first quarter of 2023.
The Decision to Sell, a “Major Step” for Catena’s Journey
Catena Media’s chief executive officer Michael Daly commented on the agreement, calling it a “major step” on their “journey to focus the business on online sports betting and casino affiliation in high-growth, regulated markets in the Americas”. Daly also expressed his confidence in GiG’s ability to nurture and grow a “strong environment” for AskGamblers and the rest of the brands that are part of the agreement.
At the same time, the acquisition is expected to help GiG Media strengthen its foothold as a leading company in the casino affiliate industry. Speaking about Catena’s future business strategy, Dale explained the company was now in an “even stronger financial position” and prepared to take advantage of the market opportunities ahead while working on expanding its exposure and getting more access to the US capital markets in the future.
Previously, Catena announced a strategic review with a focus on the quickly expanding markets in North America, while expressing the intention to keep streamlining their business in line with this objective. Accordingly, Catena announced it was assessing the option of divesting from assets and markets like the Financial Trading brands and their remaining brands in Europe which third parties have already expressed interest in.
GiG, “Extremely Excited to take Over” AskGamblers
GiG’s chief executive officer Richard Brown expressed their excitement to be taking over the AskGamblers brand. Brown spoke about their plans to mix the brand with their media world-class technology and operational capacities to create a product that would help them expand globally. At the same time, GiG plans to keep helping AskGamblers grow while integrating their website assets and staff into GiG.
During the first nine months of the current year, Catena’s websites recorded a two-digit drop in revenue to €12.9 million ($13.6 million), while gathering a combined net book value of €27.2 million ($28.8 million) at the end of the third quarter. EBITDA also totaled €8.4 million ($8.9 million) during the same period.
GiG will pay €20 million in cash on the date of the closing, €10 million a year after closing, and €15 million two years after closing. The group will finance the initial consideration using a mix of cash, a share issue, and a revolving credit facility. GiG recently appointed Marcel Elfersy as its new platform and sportsbook chief commercial officer after announcing partnership deal with News Corp UK & Ireland at the start of December.