The deal will be financed over 24 months with four semi-annual payments. GiG will pay €15m up front in cash and €20m over the remaining period.
The acquiring business said the deal will “accelerate its market presence in the valuable North American market”.
Rebrand & financials
GiG will be acquiring all of KaFe Rocks’ brands including the US-facing Time2play.com and USCasino.com.
Back in June, the affiliate announced that it was rebranding to Time2Play Media. Yet the business remains under the KaFe Rocks Ltd name.
The affiliate also expects to generate a minimum revenue of €23m from KaFe Rocks in 2024 with an EBITDA margin above 45%. This implies an EV/EBITDA multiple of around 3.6x for the acquisition.
GiG expects the acquisition will further diversify the business as well as improve customer, website and market concentration and reduce overall risk.
Subsequently, the investment will have an effect on GiG Media’s revenues, anticipated to reach between €125m and €135m in 2024.
RB Capital acted as sell-side adviser to KaFe Rocks for the transaction.
North American growth
Jonas Warrer, GiG CEO, said the acquisition fits its commitment to remaining a market leader and growing in North America.
“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.”
This marks the second casino affiliate acquisition for GiG in 2023 after it completed the purchase of AskGamblers.com in January. GiG paid €20m for the affiliate initially with further payments of €10m and €15m to be paid on 31 January 2024 and 31 January 2025 respectively.