GiG confirms plans for KaFe Rocks acquisition

The award-winning iGaming platform and sportsbook solution provider, powering the growing gambling industry, Gaming Innovation Group (GiG), announced it inked an agreement to acquire the leading iGaming affiliate, KaFe Rocks. The announcement about the planned acquisition came Wednesday with the group confirming the total purchase price of €35m.

A breakdown provided by GiG reveals that an initial upfront cash payment of €15m would be payable. Then, in semi-annual payments over a period of 24 months, another €20m would be paid. The acquisition is also subject to additional payment given that KaFe Rocks meets specific performance targets.

Moreover, GiG said that an additional €2.5m payment in shares would be payable depending on certain operational cost savings targets. The company confirmed that the acquisition is expected to be financed through a combination of cash on hand, as well as proceeds from a potential bond issue and/or shareholder loans.

As with other high-profile deals, the closing of the transaction is subject to relevant regulatory and finance due diligence approvals. Not unexpectedly, GiG's board must also sign off on a final approval. The closing of the transaction is expected at some point in December this year.

Aimee Speight, a spokesperson for KaFe Rocks, commented on the topic in a statement. "It’s a momentous occasion for KaFe Rocks to join forces with GiG Media," she explained. Speight added that the company explored different buyer opportunities but ultimately picked GiG Media in light of its outstanding performance in the near past. "Joining GiG Media, we are optimistic about seeing Kafe Rocks business venturing into new heights," she explained in conclusion.

Jonas Warrer, GiG's CEO, added that the company plans to continue to hold its leading casino affiliate position and propel its expansion in North America. According to him, the acquisition of KaFe Rocks complements those goals. "After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family," added Warrer.

Finally, GiG's CEO explained: "In KaFe Rocks, we’ve found a flourishing business led by an exceptionally skilled team. Their reputable affiliate assets will undoubtedly drive growth for the broader group. I eagerly await working closely with the KaFe Rocks team."

Currently, KaFe Rocks is known as a leading iGaming affiliate. The company has a growing portfolio of brands that have a presence in more than 15 markets across the globe. KaFe Rocks' US-facing brands, USCasinos.com and Time2play.com have a strong presence in the country. Such assets are undoubtedly going to benefit GiG Media on its way to expanding in North America.

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