GiG finalizes acquisition of leading affiliate KaFe Rocks

Early last month, the leading iGaming technology company, offering services, products and solutions for online gambling operators across the globe, Gaming Innovation Group (GiG), confirmed its plans to acquire KaFe Rocks, a renowned affiliate leader within the iGaming vertical. After the announcement made on November 7, 2023, GiG confirmed Thursday it completed the acquisition of KaFe Rocks, solidifying its position within the casino affiliation sector.

The price tag for the takeover was set at €35m. This total included an upfront cash payment of €15m along with €20m in payment distributed within four semi-annual installments over the next 24 months. Moreover, GiG confirmed it may issue up to €2.5m in GiG shares for the sellers in Q1 next year, subject to KaFe Rocks meeting specific operational cost savings targets by the end of this year.

Jonas Warrer, GiG's Group CEO, was excited about the completed acquisition and acknowledged the importance of the transaction. In a statement, he explained: "Our goal is to maintain our position as the leading casino affiliate in the industry and to expand further in the North American market." According to him, the acquisition of KaFe Rocks complements the company's aforementioned goal.

Additionally, Warrer said: "We've identified a thriving business led by an exceptionally skilled team." Finally, GiG's Group CEO pointed out: "We eagerly anticipate integrating KaFe Rocks into the GiG family, unlocking additional business value to benefit our partners and investors."

Ultimately, the takeover represents a strategic move for GiG's media division, GiG Media. Through the acquisition of KaFe Rocks, the media division anticipates growing its presence in online casino affiliation. Moreover, the company plans to propel its footprint across markets in North America that hold significant potential.

The acquisition of KaFe Rocks comes on the heels of another important takeover. GiG previously acquired AskGamblers in another move that sought to propel GiG Media's position in online casino affiliation. After acquiring KaFe Rocks, the company anticipates benefitting from synergies that are expected to bring a minimum revenue of €23m for 2024 from the KaFe Rocks assets.

Earlier this month, GiG announced it hired Matthew Saxon for the role of Chief Technology Officer. At the time, the company confirmed that the experienced executive was appointed for the role of its Platform and Sportsbook. The appointment represented a strategic move for GiG as the company sought to strengthen its team led by CEO Richard Carter.

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