GiG is nearing the finalization of its acquisition of an 80% stake in 888Africa, a move that signals a pivotal shift for the company. This unexpected return to the B2C sector is seen by GiG's CFO, Phil Richards, as a way to generate immediate earnings and strengthen its position in Africa's burgeoning market.
Last month, GiG Software plc revealed its plans for the acquisition of 888Africa, which is a part of Evoke, in a deal worth up to €16.4 million ($19.1 million). To finance this acquisition, GiG plans to raise €2.5 million through a directed share issue, alongside €6 million via convertible debt. This acquisition marks GiG's return to B2C following its decision in 2023 to operate purely as a B2B platform.
Richards stated that he expects the deal to close by the end of September, adding that it positions GiG as a profitable and cash-generative B2C operator, providing an important foothold in some of Africa's most rapidly expanding regulated markets. He refers to this deal as a "strategic bridgehead" that will benefit GiG’s core B2B operations.
He emphasized, "That dual value is really the point of the deal. Owning a leading local operator gives us direct, ground-level insight into regulatory developments, player behaviour, and payment infrastructure across several African markets, insights that are very difficult to build from the outside."
Richards elaborated on the strategic rationale for GiG’s foray back into B2C, explaining that the decision was driven by three key factors. "First, our own priorities have shifted. We are moving away from a growth-at-all-costs mindset towards a more disciplined focus on profitability and cash generation, and 888Africa is immediately accretive on both counts. Second, the opportunity itself was time-limited. 888Africa became available because of Evoke's own strategic evolution, and assets of this quality with this kind of market position do not come up often. Third, the African market has matured to a point where regulatory, mobile, and demographic forces are now leading to real and sustainable growth."
Some analysts are speculating whether the decision to acquire 888Africa and re-enter B2C was influenced by challenges facing GiG’s B2B operations. Hjalmar Ahlberg from Redeye commented on the initial optimism following the company's management transition, highlighting that while there were promising prospects, some customer targets did not materialize as expected.
Ahlberg characterized the 888Africa deal as opportunistic, which Richards also acknowledged, calling it a "targeted, opportunistic move" with attractive economics. The ongoing takeover of Evoke means that Bally’s will retain a 20% stake in 888Africa and will continue to play an active management role.
Ben Robinson, Managing Partner at Corfai Capital, expressed confidence in the acquisition price, suggesting that GiG has gained a valuable asset at a reasonable valuation. He observed that the €16.4 million price for 80% of the company suggests a favorable enterprise value compared to its projected growth metrics.
Richards affirmed that entering the African market has been a long-held ambition for GiG, noting that they received the relevant information memorandum in Q2 2026. He highlighted the importance of Africa as a market that GiG CEO Richard Carter has long admired, allowing them to act swiftly on the opportunity.
Both Richards and Ahlberg pointed out that GiG's acquisition isn't about rescuing a distressed company but rather taking on a well-positioned entity led by industry expert Christopher Coyne, which already boasts significant market presence in Mozambique, Angola, and Tanzania.
While the acquisition underlines an exciting opportunity in Africa, Robinson also cautioned that it presents its own set of challenges. He noted that Africa is not saturated, but it does come with regulatory and currency risks, alongside existing local competition.
Richards stated that GiG’s primary focus post-acquisition will be on thoughtful integration of 888Africa’s operations, ensuring compliance with GiG's standards. Ahlberg suggested that this transition could lead to operational efficiencies and synergies down the line, though expansion will be approached with caution initially. Richards reiterated, "We are deliberately not pursuing an aggressive expansion agenda in the early months. We will prioritize integration first and only look at new market entry once we are confident in our operational foundations."
While some analysts ponder whether this acquisition is the start of a new series of B2C initiatives for GiG, Richards clarified that this move is specific to Africa, emphasizing the strategic rationale behind acquiring a local operator in a high-growth, underpenetrated region. Ahlberg confirmed that with GiG's current cash allocations, he does not foresee additional B2C acquisitions in the near future.
Robinson presented a broader perspective, suggesting that this could signal a significant strategic shift for GiG as it aims to establish a presence in emerging markets. He noted that GiG previously operated successful B2C brands before moving away from that model, and the current leadership seems open to a blended approach.
Ultimately, Ahlberg suggested that this acquisition opens two potential avenues for GiG: a more pronounced B2C presence or a return to a focus on B2B, depending on how each sector performs moving forward.
"If the B2B starts to grow faster, they might lean more into that sector, but if B2C does really well, they may invest more there too. It’s still early to determine the long-term trajectory of this strategy," he concluded.
