GiG to acquire 80% stake in 888AFRICA

• GiG has agreed terms to acquire an 80% stake in 888AFRICA for €16.4m
• The deal still requires a signed Share Purchase Agreement and customary regulatory approvals
• GiG is raising €8.5m through a share issue and convertible loans to help fund the purchase

GiG Software has confirmed that it has agreed principal commercial terms with Virtual Emerging Entertainment Limited, an evoke plc subsidiary, which will allow it to acquire 80% of the shares in 888AFRICA for a total of €16.4m. This includes an initial consideration of €6m and deferred consideration of €10.4m.

GiG is set to boost its operations through 888AFRICA acquisition

The company will be fundraising through a directed share issue and enter into convertible loan agreements, which should allow it to secure €8.5m that will directly support its efforts to complete the purchase. The split between equity and convertible loans is expected to be 70/30, but it may change depending on shareholder and investor preference.

The deal would still need to receive customary approvals as well as the signature of a Share Purchase Agreement. The remaining shares that won’t be purchased by GiG Software will be retained by the founders, who will retain an active management role in the business, the company said.

GiG Software anticipates a combined revenue for the resulting group of circa €44m-€48m and adjusted EBITDA of €5m-€7m. GiG Software has been looking to once again scale its presence in the B2C sector, citing difficulties operating as a solely B2B company, and looking to secure a worthwhile deal with an established operator.

GiG Software has been careful about the deal, analyzing its potential and weighing its benefits. The company will achieve multiple goals in the same stride - first by onboarding business clients, and second by accessing the fast-developing African market.

The acquisition, despite the additional funding required, would also lead to a better overall balance sheet for the company.

888AFRICA holds a market-leading position in Mozambique, with additional operations in Angola and Tanzania

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