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Gaming Innovation Group

Gaming Innovation Group

GIG: Gaming Innovation Group secures pole position in casino affiliation by acquiring KaFe Rocks

22:55 / 7 November 2023 Gaming Innovation Group Press release

Gaming Innovation Group Inc. (GiG) has today signed an agreement to acquire
affiliate leader KaFe Rocks Ltd. Through this strategic purchase, GiG Media will
cement its position as the dominant lead generator within the lucrative online
casino market. Furthermore, GiG Media will accelerate its market presence in the
valuable North American market. The strong synergies underlying the transaction
will further accelerate the growth GiG Media has delivered over the last few
years, with 12 successive record-breaking revenue quarters.

KaFe Rocks is a prominent iGaming affiliate, boasting multiple Power Affiliate
top 10 rankings. The company has a thriving global portfolio diversified across
15+ markets, featuring user-centric US-facing flagship brands Time2play.com and
USCasinos.com. These assets will further position GiG Media in the US market.
Over the last 12 months, Time2Play has shown impressive revenue growth, with
further acceleration expected.

Like the successful AskGamblers acquisition, GiG Media aims to drive substantial
growth for the acquired KaFe Rocks assets, leveraging its proprietary media- and
marketing technology and a strong focus on data and business intelligence. Solid
cost synergies underlying the deal will further maximise profitability for the
acquired business.

It is anticipated that Kafe Rocks will generate a minimum revenue of MEUR 23 in
2024 with an EBITDA margin above 45%, implying a 2024 EV/EBITDA multiple of
around 3.6x for the acquisition. The EBITDA margin is expected to increase over
the next few years. On top of the revenue and EBITDA growth potential, the
acquisition will further diversify GiG Media's business, improving customer,
website, and market concentration and reducing overall risk. The investment will
accelerate GiG Media revenues, expected to reach between MEUR 125-135 for 2024.

Jonas Warrer, CEO of GiG, said: "We want to remain the leading casino affiliate
in the industry and grow in the North American market. Our acquisition of KaFe
Rocks validates these goals. After the successful integration of AskGamblers, we
have been looking for the next splendid candidate to join the family. 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."

Aimee Speight, spokesperson for KaFe Rocks, said: "It's a momentous occasion for
KaFe Rocks to join forces with GiG Media. We considered several buyers but were
persuaded to go with GiG Media based on the strong performance the company has
shown over the last few years. Joining GiG Media, we are optimistic about seeing
Kafe Rocks business venturing into new heights."

The purchase price is MEUR 35, consisting of a MEUR 15 upfront cash payment and
MEUR 20 in four semi-annual payments over 24 months with an added earn-out given
specific performance targets are met. In addition, GiG will pay MEUR 2.5 in
shares subject to specific operational cost savings targets.

The transaction is structured by way of a Share Purchase Agreement (SPA) were
GiG's subsidiary Innovation Labs Ltd. (part of GiG Media) acquires KaFe Rocks
Limited (Malta). GiG intends to finance the initial consideration through a
combination of existing cash, shareholder loans, and/or proceeds from a
potential bond issue. Closing of the transaction is subject to completion of due
diligence, financing, applicable regulatory approvals, and final board approval
and is expected in December 2023.

For more information, please contact:
Jonas Warrer, CEO of GiG, jonas.warrer@gig.com, +45 30788450
Petter Nylander, Chairman of GiG, petter.nylander@gig.com +46 765250955

This information is information that Gaming Innovation Group Inc. (GiG) is
obliged to make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication through the agency of the contact
person set out above, at 22:55 CET on 7 November 2023.

About Gaming Innovation Group (GiG)
Gaming Innovation Group is a leading iGaming technology company, providing
solutions, products and services to iGaming Operators. Founded in 2012, Gaming
Innovation Group's vision is 'To be the industry leading platform, sportsbook
and media provider delivering world class solutions to our iGaming partners and
their customers.  GiG's mission is to drive sustainable growth and profitability
of our partners through product innovation, scalable technology and quality of
service. Gaming Innovation Group operates out of Malta and is dual-listed on the
Oslo Stock Exchange under the ticker symbol GIG and on Nasdaq Stockholm under
the ticker symbol GIGSEK. www.gig.com
Oslo Børs

This information was distributed by Oslo Børs https://www.oslobors.no/