These assets include the company's affiliate websites, accounts and associated agreements. The affiliate network is mainly targeting the Dutch market. The acquisition will significantly strengthen GIG's business area Innovation Labs' presence as an online traffic driver for the iGaming industry.
After this acquisition, Innovation Labs expects to generate more than 40,000 New Depositing Customers (NDC's) to B2B clients and GIG's own operators on a yearly basis.”
The acquisition includes recurring revenues from the existing portfolio of affiliate accounts with partnering operators, and the affiliate assets has generated a revenue of around EUR 125,000 per month so far in 2016.
The assets are expected to contribute with revenues of minimum EUR 2 million to Innovation Labs the next 12 months. After this acquisition, Innovation Labs expects to generate more than 40,000 New Depositing Customers (NDC's) to B2B clients and GIG's own operators on a yearly basis.
In addition to the affiliate assets of Delta Markets, GIG acquires 50% ownership in other gaming sites established by Delta Markets and an option to acquire the remaining 50% within two years. Innovation Labs will take an active part in developing and ensure that these sites potential will be achieved during the next two years.
GIG will pay a consideration of EUR 4.2 million for Delta Markets, whereof 30% will be settled with 4,336,314 new GIG shares. The acquisition is subject to a satisfactory due diligence, and is expected to be concluded by the end of March.
"This acquisition will make Innovation Labs the local leader for referring paying users in the highly sought after and soon to be regulated Dutch casino market. Innovation Labs has proven to increase organic growth when bolting on individual assets to our core referral platform. We are continuing to build out our distribution channel for the top performing brands in the industry, and look forward to deliver even more quality online resources for end-users", said Robin Reed, CEO of GIG.