Malta-based online gaming company Gaming Innovation Group (GIG) has acquired an unnamed iGaming affiliate network, an announcement that comes as a further manifestation of the ongoing consolidation within the affiliate marketing sector.
GIG is set to pay a total consideration of €3.5 million or four times EBITDA of the undisclosed company. Due diligence should be first conducted and if all terms are satisfied, the transaction is expected to be completed by the end of this year’s first quarter. The deal includes the purchase of all affiliate sites, related agreements, and accounts within the network.
The newly acquired assets will complement GIG’s existing ones in its performance marketing division Innovation Labs. The amount paid for the company’s latest acquisition further points to its determination to delve into the affiliate marketing business as part of its multi-faceted operations.
GIG has not been the only company to have recently engaged in multi-million acquisition deals within the iGaming affiliate space. Although it has indeed been among the drivers of what now seems to be a growing trend, it can be said that Catena Media has been the champion in that endeavor. The latter, also a company originating from the Nordics and based in Malta, has closed a number of affiliate-related deals, all of which multi-million ones, in a very short period of time.
It can be said that the affiliate consolidation trend mimics the consolidation within the larger gambling industry. Driven by regulatory challenges and too fierce competition, some of the world’s largest gambling operators combined their businesses in an effort to improve profitability and blunt negative effects. The iGaming consolidation movement from the past one or two years can to a great extent be attributed to the same reasons.
A trend can also be spotted in the markets with the highest consolidation activity. Both GIG and Catena Media have shown particular interest in the Nordics and affiliates originating from the Nordics and focused on that particular European region. The UK, where online gambling has grown into a top market performer, has been another destination to have been eyed by the performance marketing companies to have been the most active consolidation drivers.
