GiG plans B2C comeback through evoke’s 888AFRICA

GiG Software plc has approved a fundraising initiative to acquire an 80% stake in 888AFRICA from evoke for approximately €16.4m (£14m). Fundraising will be carried out through a directed share issue and by entering convertible loan agreements for a combined value of €8.5m The corporate ownership stake will be acquired from Virtual Emerging Entertainment Limited (VEEL), an evoke subsidiary, with which principal commercial terms have already been agreed. Subject to further approvals and agreement signings, the remaining shares will be kept by the founders, who will maintain their direct participation in the management of the business. “888AFRICA is a cash-generative, profitable, fast-growing B2C operator in Africa. The consideration is made up of an initial consideration of c. €6m and a deferred consideration of c. €10.4m,” GiG stated. 888AFRICA is a major player on the continent, counting Mozambique, Kenya and Zambia as some of its core local markets, while also rapidly growing in Angola and Tanzania. The company was set up in 2022 as a joint venture between evoke (then trading as 888 Holdings) and Christopher Coyne, who serves as Chief Executive Officer of the business. Net proceeds generated through the fundraising will be used to carry the initial acquisition payment, while the equity and convertible loans split is expected to come at 70/30, GiG management confirmed. The Share Issue will be carried out with deviation from the shareholders’ preferential rights, which was voted in favour of by the GiG Board after an assessment concluded that a directed issue offers a shorter timeframe that mitigates adverse effects on the share trading price, lower transaction costs, and optimal capitalisation of the acquisition opportunity, therefore acting in the best interests of GiG. Detailed terms of the Share issue and the convertible loan agreements will be provided in future communiques, pending the execution of all definitive agreements. GiG last operated a B2C division in 2020, before selling it all to Swedish gambling international Betsson for €31m in April of that year. On a separate note, selling off 888AFRICA is unlikely to have any significant impact on evoke’s almost €2bn debt, as it prepares for a buyout by Bally’s Intralot itself. GiG targets ‘slow and steady’ growth Following the acquisition, GiG will enact a deliberate deviation from the pursuit of growth-at-all-costs to a more stable, profit-driven and cash-generative growth. Management confirmed that in the early stages of 888AFRICA’s integration, adopting slower near-term gains will take prevalence over immediate exposure to the high-growth African market, which would then strengthen the overall business over time. Richard Carter, GiG CEO, said: “Africa’s online gambling sector offers and unparalleled long-term growth opportunity, driven by demographic, mobile and regulatory tailwinds that few other regions can match. “Following the completed acquisition, which we estimate will occur by the end of September, our priority will be disciplined integration of 888AFRICA and recurring revenue growth within the core business, rather than pursuit of a high volume of new opportunities. “This means a more measured pace of standalone top line growth in the near term, a deliberate trade-off in favour of a leaner, more sustainable and cash generative core business alongside a high growth, high margin African platform.” “We believe this combination will sharpen our focus, concentrating our resources on a defined portfolio of partners and, supported by deeper operator and product expertise from the 888AFRICA team, allow us to deliver a higher quality, more responsive and more tailored service to our customers.” GiG expects to break even by end-of-year The news of the planned acquisition was shared within GiG’s Q2 2026 interim financial report, which saw quarterly revenue go down 5% YoY to €8.8m (Q2 2025: €9.3m). Adjusted EBITDA also dropped 25% from €1m to €800,000. Both revenue and adjusted EBITDA declines were attributed to the April insolvency of key client Richmond Atlantic, which triggered €2.9m in bad debt provisions. This also heavily affected the final EBITDA figure, which dropped a significant 328% from a positive €1m in Q2 2025 to a negative €2.2m for the three months ending 30 June 2026. Operating loss increased from €3.7m in Q2 2025 to €7m as of 30 June 2026, while cash and cash equivalents stood at €3.5m, down from €4.3m in the previous corresponding period, Net cash outflow was minus €1.9m. Two major cost optimisation strategies were launched in 2026, targeting more than €10m in annualised savings. A €4.5m annualised savings programme has already been delivered, while the second €6m one is on track to be delivered fully by September 2026 – the same timeframe that GiG is targeting for the completion of 888AFRICA’s acquisition. Return to profitability is expected by the end of the financial year. Taking the 888AFRICA acquisition into consideration, GiG expects combined revenue of €44m-to-€48m and Adjusted EBITDA of between €5m-to-€7m for FY26, granted full contribution by 888AFRICA in Q4. 888AFRICA adding to GiG’s international pipeline GiG is also moving to deliver on its international plans elsewhere. Back in February, the company outlined Spain, France and the Philippines as priority jurisdictions to increase its market share. In Spain, the planned closure of the legacy Alira platform in 2027 will deliver further annualised cost savings and consolidation of GiG’s local tech proposition. The firm is currently mitigating customers to its newest CoreX platform to drive a revenue upside. No major movements have yet been made in France, where GiG already has an exposure through its B2B subsidiary Sportnco. However, potential future opportunities were noted by management in light of the French regulator ANJ’s ongoing review of expanding online casino licensing. GiG is also currently working on a planned launch in Brazil and the Philippines by the end of this year, as announced earlier in April. The B2B tech provider has also been active from day one in Alberta, which launched its licensed online market in July, and is expected to generate between €440m and €625m in GGR over the next few years, as per H2 Gambling Capital.