Gaming Innovation Group (GiG) has secured all necessary approvals to finalise its acquisition of sports betting systems provider Sportnco.

Initiated on 22 December last year, GiG entered a definitive agreement to acquire Sportnco outright for a total consideration of €51m.

The deal saw GiG agree to pay an upfront cash payment of €27.8m, with the remaining settlement to be paid via the allocation of 12.6 million new shares priced at NOK 18.08.

Supporting the transaction, GiG entered into a strategic arrangement with customer SkyCity in the same month which saw SkyCity invest €25m in GiG through a directed share issue at NOK 18.00 per share, equal to 13.4 million new GiG shares,

Proceeds from the SkyCity investment were used to finance the cash element of the Sportnco acquisition.

Completing the transaction, GiG has expanded its outstanding corporate shareholding from 96 million to +122 million shares listed on the Oslo Bors and Stockholm Nasdaq.

Hervé Schlosser, CEO and founder of Sportnco, said: “Together with all the teams and shareholders who have built the success of Sportnco and Tecnalis, we are extremely proud of the journey we have accomplished since 2008, and of our integration today into the GIG group.

“I look forward to opening this new chapter as I am confident that, together, we will offer stronger technology solutions for our customers in the fast-growing regulated markets.”

GiG underlined the significance of Sportnco betting systems and platform provisions that will be combined to its existing technology portfolio alongside its high-growth media services.

Updating investors on 2022 forecasts, the group anticipates that combined operations will generate revenues of €87-93m with an EBITDA of €30-35m.

CEO Richard Brown underlined that following the integration of Sportnco, GIG will continue to look at possible strategic options to increase shareholder value going forward.

“The team at Sportnco have built a tremendous business, one that is highly complementary to GIG’s offering both in product but also addressable market increase, and now the work begins to realise the truly existing growth opportunities that the business combination can pursue.

“We welcome both the owners of Sportnco and SkyCity as shareholders and the staff of Sportnco into GiG organisation and now move forward with full focus on the execution of the post-merger integration plan.”