GiG is nearing the final stages of acquiring an 80% stake in 888Africa, a significant move that signals the company's unexpected return to the B2C sector. Phil Richards, GiG's CFO, sees this acquisition as a way to enhance immediate earnings while establishing a stronger presence in the African market.
In a deal valued at up to €16.4 million (approximately $19.1 million), GiG Software plc outlined its plans last month for this acquisition of 888Africa, which is part of Evoke. To facilitate the purchase, the company is raising €2.5 million through a directed share issue and plans to generate an additional €6 million via convertible debt. Notably, this acquisition represents a shift back into the B2C arena after GiG redefined itself as a B2B platform provider in 2023.
Richards indicated that the deal is expected to close towards the end of September. He believes it positions GiG as a "profitable, cash-generative B2C operator" and opens doors to some of Africa's most rapidly growing regulated markets. He described it as a "strategic bridgehead" for GiG's core B2B business.
"That dual value is really the point of the deal," Richards explained. He noted that having a local operator can provide insights into regulatory changes, player behavior, and payment systems across different African markets, insights that are often challenging to acquire from an external perspective.
According to Richards, GiG anticipates that this understanding and local engagement will facilitate discussions with other operators interested in entering or expanding in Africa. He related this to GiG's historical B2C experience in Europe, which helped support its platform offerings in that region.
The reasons behind GiG's return to B2C at this time are multifaceted. After exiting the B2C sector in 2023 due to strategic changes, GiG separated its media and platform divisions. The announcement of the 888Africa acquisition prompts questions about this renewed focus on B2C. However, Richards focuses on three main reasons for this decision:
First, GiG’s priorities have evolved. The company is shifting from a growth-at-all-costs mentality towards a more disciplined emphasis on profitability and cash flow, and acquiring 888Africa aligns with this direction. Second, the opportunity was time-sensitive; 888Africa became available due to Evoke's own strategic realignment, and such advantageous assets are rare. Third, Richards pointed out that the African market has matured to a level where it now offers sustainable growth rather than just initial potential.
However, analyst Hjalmar Ahlberg from Redeye suggests that GiG's move to acquire 888Africa may also be a response to challenges faced by its B2B business. Initially, after the management change and spin-off, the B2B operations saw promising growth projections, but some opportunities faltered, such as uncertainty surrounding certain customers and a delayed launch in Brazil.
This acquisition is perceived as both opportunistic and well-timed. Richards confirmed that the deal is a “targeted, opportunistic move” with economically appealing terms. In the ongoing acquisition of Evoke, Bally’s Intralot will manage the remaining 20% stake in 888Africa.
Ahlberg believes that the €16.4 million valuation for 888Africa, with a deferred consideration of around €10.4 million, presents an attractive offer while minimizing immediate cash outlay. Ben Robinson, Managing Partner at Corfai Capital, was even more optimistic about the deal, suggesting it is economically favorable given the quality of the business being acquired.
Richards highlighted that the African market has been part of GiG’s strategic considerations for some time. He disclosed that initial interest was sparked in Q2 2026, reflecting CEO Richard Carter’s long-standing admiration for the African market and enabling a swift pursuit of 888Africa.
Richards and Ahlberg noted that acquiring 888Africa does not indicate a turnaround scenario; rather, it involves taking over a management team led by industry veteran Christopher Coyne, which already holds a significant market presence in regions like Mozambique, Angola, and Tanzania.
Robinson cautioned, however, that entering the African market poses its own set of challenges despite the potential for profitability and growth. While the competition is less saturated compared to European markets, local incumbents like Betway are already well-established.
Richards emphasized that GiG's immediate objective after completing the acquisition will be to ensure a smooth integration of 888Africa’s operations, compliance, and financial reporting standards. Transitioning 888Africa onto GiG’s technology platform could yield future synergies, but Richards underscored a cautious approach to any further market expansions in the immediate future.
While some analysts wonder if this acquisition signals the beginning of a broader trend towards more B2C acquisitions for GiG, Richards clarified that this is not the case. He maintains that Africa presents a unique high-growth opportunity that warrants this specific investment. Financial constraints also come into play, as GiG has utilized its cash resources for the current acquisition and does not plan to pursue further B2C ventures in the near term.
Robinson disagrees, viewing this acquisition as a potential herald of significant strategic shifts for GiG, pushing towards consolidating within emerging markets where it can assume more control over operations. Ahlberg notes that the acquisition opens two trajectories for GiG, with the balance between its B2B and B2C segments likely influenced by operational performance in both arenas. He concluded that the future could see GiG expanding further into either domain, contingent upon the growth trajectories observed.
