GiG Software to acquire 80% of 888Africa for €16.4m
The acquisition will give GiG Software a larger presence in African B2C gaming, with 888 Africa operating across markets including Mozambique, Tanzania and Angola.
South Africa.- Online gaming supplier GiG Software has agreed to acquire an 80 per cent stake in 888Africa from Evoke subsidiary Virtual Emerging Entertainment Limited for €16.4m (US$19m), as the technology provider expands into African B2C gaming.
The transaction comprises an initial payment of €6m (US$7m) and deferred consideration of €10.4m (US$12.1m). The remaining 20 per cent will stay with 888Africa’s founders, who will continue to be involved in running the business.
GiG expects the acquisition to close by the end of September, subject to the completion of the transaction process. It is also raising €8.5m (US$9.9m) through a directed share issue and convertible loan agreements to help finance the deal and support general corporate requirements.
The funding is expected to comprise roughly 70 per cent equity and 30 per cent convertible loans. GiG said the structure would allow it to complete the financing more quickly than a rights issue.
888Africa operates in several African markets, including Mozambique, Tanzania and Angola. GiG CEO Richard Carter said the investment would give the company exposure to a region with significant room for online gaming growth. He noted: “We believe this transaction has multiple positive connotations for GiG’s near-term and also longer-term profit and cash flow metrics.”
He also pointed to Africa’s demographic growth, increasing mobile connectivity and the expansion of regulated gambling markets as factors supporting the investment.
Carter stated that GiG would focus on integrating 888Africa into its operations and growing recurring revenue after the takeover, rather than immediately pursuing further acquisitions or expanding into a large number of new markets. He said: “This means a more measured pace of standalone top line growth in the near term,” adding that the company would focus on building a “leaner, more sustainable and cash generative core business”.
GiG’s return to B2C follows its separation from Gentoo Media in 2024. The company also plans to establish a B2B operation in Africa within the next 12 months.
