ddsModel has for several years developed software used for automated and manual pricing of global betting markets. The company produces data utilized to generate real-time pricing of Pre-Match and InPlay sports events through the use of quantitative methods and proprietary analytical models, which are complementary to third party odds providers.
Through this transaction, GIG will assume a team of top class experienced traders whom are sourcing the very best information and data into technology platforms to trade sports and hedge risk. By deriving prices from sports data the traders are executing betting strategies using automated software «trading- robots».
All systems will be fully integrated with iGamingCloud's Sportsbook engine and will significantly enhance the offering for the benefit of internal brands and B2B customers. The aim is to conclude initial integrations of the systems ahead of the Euro Cup in June, while a complete integration will be concluded thereafter.
Robin Reed, CEO of GIG, said:"We´ve been working towards this acquisition for nearly 8 months and are thrilled to conclude. Sportsbetting is the largest vertical within the iGaming sector. Through the acquisition and integration of the very exciting software, and vastly skillful people of OddsModel, GIG will significantly enhance its capability to serve attractive and innovative solutions to B2B and B2C customers. We aim at concluding integrations in time to serve our clients and customers a very competitive Sportsbook for the Euro Cup".
GIG will issue 21.87 million new GIG shares as consideration for all shares in OddsModel, corresponding to a multiple of approximately six on the projected net result for OddsModel in 2016. The new shares will be subject to a two-year lock-up agreement.
The closing of the transaction is subject to a satisfactory due diligence review and final approval by GIG's Board of Directors.
The new shares will be issued under the Company's 750,000,000 authorized shares. GIG's outstanding shares today are 525,120,952. Following completion of the transaction, the Company will have 546,990,952 shares outstanding.
Close associates of Christopher Langeland, board member and primary insider of GIG, owns 46% of OddsModel and will receive 10,060,200 new shares in GIG pending completion of the acquisition. After completion of the transaction, Mr. Langeland and close associates will own 16,497,018 shares in GIG.