GiG Software has announced its plan to acquire an 80% interest in 888Africa from a subsidiary of evoke plc for €16.4 million, marking a significant move back into the business-to-consumer (B2C) market. The deal, revealed on August 26, involves an immediate payment of €6 million, with an additional €10.4 million contingent on performance-based metrics. Meanwhile, the founders of 888Africa will retain a 20% stake and continue managing the operations of the company.
Operating in several African countries, 888Africa’s strongest market performance comes from Mozambique. This acquisition is expected to provide GiG Software with a profitable B2C operation, positioning it more prominently within the rapidly growing online gambling sector in Africa.
To facilitate the acquisition, GiG Software plans to issue shares valued at €8.5 million, which is anticipated to cover approximately 70% of the acquisition cost, with the remainder being secured through convertible loans. The initial payment of €6 million will use proceeds from this share issuance, while the balance will support other operational activities. GiG believes this financing strategy will enable a more efficient and cost-effective share offering compared to traditional rights issues.
This transaction signals GiG Software’s return to the B2C segment after its split from Gentoo Media, as the company has faced losses in every quarter since the separation. However, the completion of this acquisition is subject to various legal approvals and the finalization of the share purchase agreement. Following the announcement, GiG’s shares saw a decline of about 20%, trading at SEK 1.38.
