Nio to merge with Gaming Innovation Group
Internet gaming company Nio has agreed a deal to acquire fellow online gaming firm Gaming Innovation Group (GiG).
Under a share exchange agreement signed by both companies, the entire issued share capital of GiG will be exchanged for share in Nio to create a new online gaming company.
Nio will issue 290 million new Nio shares as consideration for all shares in GIG.
GiG may also be entitled to a variable consideration of up to 125 million shares, provided GIG reaches revenue targets of €24 million ($27.4 million) in 2015 and €39 million in 2016.
New shares will be subject to a lock-up agreement that will run for two years.
GiG is the parent company of various online gaming subsidiaries such as the Guts.com website and platform technology provider iGamingCloud.com.
In a joint statement, Nio and GiG said the new joint company will follow an end-to-end strategy by developing proprietary technology and applications across the online gaming value chain.
Operating under a vendor-neutral policy, the company will also promote openness and connectivity and partner with key players in the industry in order to offer innovative and lean services B2B and B2C.
“The agreement strengthens Nio’s iGaming position, capabilities and value creation potential,” Nio chief executive officer Kjetil Myrlid Aasen said.
Robin Reed, managing director of GiG, added: “GiG is teaming up with NIO with a clear vision – combining valuable iGaming knowledge and experience to create a platform for investments in industry leading people, products and services.”