KoGaMa developer Adventure Box has announced its entry into the online gaming market through the proposed acquisition of Canadian platform provider Lion Gaming Group.
Adventure Box has entered into a letter of intent that would see it acquire 100% of Lion Gaming for around SEK475m ($44.9m/€41.7m/£35.3m). While negotiations over the finer details continue, the target is to finalise the acquisition in the second half of 2024.
Stockholm-headquartered Adventure Box is the company behind social gaming platform KoGaMa (pictured), used by around 30 million people worldwide.
Lion Gaming, which has offices in North America and Europe, provides white label and turnkey casino and sportsbook solutions. It has a projected turnover of approximately SEK350m and an EBITDA of approximately SEK180m in 2024.
Adventure Box said the transaction marks the beginning of its expansion in the igaming market.
“A new major gaming company is taking shape in Sweden, ready for the global igaming market,” it added in a statement.
Synergies between platforms
Mads Jørgensen, chairman of Adventure Box, added: “We see opportunities for synergies between the KoGaMa platform and Lion’s gaming platform. This acquisition lays the foundation for a global player.”
Adventure Box said major shareholders in Lion support the transaction, which they believe provides a strong foundation for future cooperation. Lion Gaming currently has approximately 70 shareholders, including financial institutions, individuals, and venture capitalists from North America, Europe and beyond.
“Adventure Box and Lion share the same vision for the gaming market, especially with synergies between the KoGaMa platform and Lion’s gaming platform and universe, including Web3 development and cross-user acquisition,” it added. “This transaction opens up opportunities in game development and aligns with Adventure Box’s strategic focus and business objectives.”
Lion to tap Adventure Box resources
Lion Gaming has several subsidiaries and brands, including Lion Gaming, MAMMOTH Workshop, Fer0x and Aggretron. Lion also holds several licences, including B2B and B2C licences in Malta and a Curaçao gaming licence.
“We look forward to becoming part of Adventure Box, said Duncan McIntyre, chief executive of Lion Gaming. We will benefit from their extensive experience and resources to further develop our business.
“This merger gives us the opportunity to benefit from synergies and strengthen our presence globally. We are confident this transaction will provide us with the tools and support we need to continue to be a leader in igaming technology. This is through organic growth and acquisition of new businesses.”
