Online gambling solutions innovator Gaming Innovation Group (GIG) Incorporated is set to significantly grow its presence in the influential Scandinavian market after announcing plans to purchase affiliate network provider Stk Marketing Limited for approximately $29.49 million.
Oslo-listed GIG Incorporated revealed that the purchase, which is expected to close next month primarily using the proceeds from a February bond issue, is being carried out by its Innovation Labs online marketing subsidiary and will represent its fourth and largest affiliate network acquisition of the year.
GIG Incorporated declared that the acquisition of Stk Marketing Limited, which is to include the firm’s full network of casino information websites along with related assets and affiliate accounts, is to see its Innovation Labs enterprise become “one of the largest suppliers of iGaming traffic in its core markets of Norway and Sweden”.
“We have set an ambition for Innovation Labs to become the largest lead generation business in iGaming and we are well underway in realizing this,” read a statement from Robin Reed (pictured), Chief Executive Officer for GIG Incorporated. “Furthermore, we have now established a leading position in the Nordic affiliate market. In line with previous acquisitions and GIG Incorporated’s vision, the Stk [Marketing Limited] acquisition will enable Innovation Labs to refer more customers to our business-to-business partners and thus benefit all parties engaged in the expanding GIG Incorporated’s iGaming eco- system.”
GIG Incorporated stated that it expects its purchase of Stk Marketing Limited to generate earnings before interest, tax, depreciation and amortization for the first year of at least $8 million with approximately 70% of these coming from perpetual revenue sharing agreements. It also explained that the transaction is to be subject to “a satisfactory due diligence and final board approval” and will see the acquisition’s entire network integrated into Innovation Labs’ BI/Data proprietary systems and marketing platforms for “both technological and operational synergies” that will “improve the margins”.