Gaming Innovation Group (GiG) Incorporated has today signed an agreement to acquire affiliate leader KaFe Rocks Limited. 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 twelve successive record-breaking revenue quarters.
KaFe Rocks is a prominent iGaming affiliate, boasting multiple Power Affiliate top-ten rankings. The company has a thriving global portfolio diversified across over 15 markets, featuring user-centric United States-facing flagship brands Time2play. com and USCasinos. com. These assets will further position GiG Media in the United States market. Over the last twelve months, Time2Play .com 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 to MEUR 135 for 2024.
