Gaming Innovation Group (GiG) has maintained its 2020 corporate agenda, confirming that it intends to fully divest its entire B2C unit to Stockholm counterpart Betsson AB by mid-April.
Last February, GiG accepted a €31 million cash and shares deal offered by Betsson to divest its entire B2C unit, including control of its flagship properties Rizk, Guts, Kaboo and Thrills.
Agreeing to the transaction, GiG will use the proceeds from its divestment to repay its SEK 300 million (€27m) corporate bond, strengthening the firm’s balance sheets.
As previously communicated to investors, GiG has chosen to divest its entire B2C unit, focusing future growth plans on the development of its B2B services and technologies.
Further deal terms stipulated that Betsson must commit to maintaining all GIG B2C brands on the GIG platforms for a minimum term of 24 months, with Betsson paying platform fees based on net gaming revenue (NGR) performance.
Richard Brown, CEO of GiG, previously commented on the transaction: “I am very excited about this transaction as it provides multiple upsides to GiG. While putting the company in a financially sustainable position, it gives us the ability to focus on where we see real long term shareholder value. This transaction serves as a strategic focusing of the company’s efforts towards the B2B segment.
“Offering both B2C and B2B services had synergies in the past, however, the current conflicting priorities of the two business areas, and increased complexity in the market, have lessened the potential offering on both fronts”.