The KaFe Rocks acquisition by GiG, or Gaming Innovation Group, has gone through for a massive £30.5 million. The deal includes the two US-focussed online casino products Time2play.com and USCasino.com.
Who are these brands?
KaFe Rocks is an established affiliate marketing company creating branded content, digital campaigns, web series, and other engaging video content. GiG, or Gaming Innovation Group is a publicly listed company headquartered in Malta that provides solutions for the online gaming industry. Their brand focuses on innovation, technology, and high-quality services for iGaming operators.
What is the money saying?
GiG will make four semi-annual payments, including €15 million upfront and €20 over the following two years. The idea is to “accelerate [KaFe Rocks] market presence in the valuable North American market”.
GiG also expects to generate revenue that reaches, at minimum, €23 million from KaFe Rocks throughout 2024. The estimated EBITDA margin is above 45%, implying EV/EBITDA reaching 3.6x due to the acquisition. With this, GiG Media is expecting revenues to reach between €125 million and €135 million.
Will there be a rebrand?
KaFe Rocks announced in June that it was looking to rebrand to the Time2Play Media name but has stayed under KaFe Rocks Ltd name thus far. There is a question of rebranding. Will KaFe Rocks keep their signature vibrant and energetic aesthetic that aims at youth demographics or will they adopt the sleek and modern visual identity of GiG that focuses on technology and innovation?
Additionally, there is the rebranding to Time2Play to consider. Time2Play’s brand is all about being playful, enjoying your time on the site and engaging colourful visuals.
What’s the purpose of the acquisition?
The idea for the acquisition is for GiG to pursue a more diverse business plan with the acquisition and further improve the website, customer and market concentration and ultimately reduce risk. It follows the company’s acquisition of AskGamblers.com in January, which would be another example of diversifying and expanding. GiG paid €20 million initially with further payments of €10 million and €15 million in January of 2024 and 2025 respectively.
GiG CEO, Jonas Warrer, expressed that the acquisition was being used to aid its place as a market leader and aid its commitment to growing in the North American Market.
“Our acquisition of KaFe Rocks validates these goals,” he added. “After the successful integration of AskGamblers, we have been looking for the next splendid candidate to join the family.
“[KaFe Rocks’] reputable affiliate assets will undoubtedly drive growth for the broader group,” he continued. “I eagerly await working closely with the KaFe Rocks team.” Aimee Speight, spokesperson for KaFe Rocks added that the sale marked a “momentous occasion for KaFe Rocks”.
“We considered several buyers but were persuaded to go with GiG Media based on the strong performance the company has shown over the last few years,” she added. “Joining GiG Media, we are optimistic about seeing KaFe Rocks’ business venturing into new heights.”
Conclusion
GiG has taken another important move to diversify its brand assets and expand while staying firmly in the iGaming industry. The acquisition is a valuable lesson in selecting your partners carefully for mutual gain. KaFe Rocks will grow in the new and important US market, while GiG will gain another revenue source and a more stable business plan.
