Snipp Interactive has announced the closure of a deal that sees the PaaS company acquire Gambit Digital Promotions Inc and its subsidiaries in a deal worth $5m.
Back in January, it was reported that a deal had been struck for the acquisition, subject to several closing conditions including the regulatory approval of TSX Venture Exchange (TSXVE).
The approval of all conditions has been met, allowing the deal to be completed. Under the provisions of the acquisition agreement, Snipp has paid $0.3m in cash, with $4.7m paid out in 20,524,925 common shares valued at $0.2903, based on the 10-day rolling weighted share price prior to the original announcement on January 11 on the TSXVE.
As stated in the ‘Lock-Up Terms’, Snipp Consideration Shares are restricted from transfer and will be released over a twelve-month period, with 33.33% released four months and one day following the closure and 66.67% released equally in each of the following eight months.
Following the announcement, Atul Sabharwal, Founder and CEO of Snipp, stated: “Since announcing the proposed acquisition of Gambit, a trailblazer in the Loyalty Gaming sector, we have received a flurry of interest from leading players in the igaming and Sports Betting industry in America.
“As previously announced, one of the strategic rationales of this acquisition was the opportunity to license our SnippCARE (Customer Acquisition, Retention and Engagement) Platform to an entirely new industry – the igaming and online sports betting industry, but also to the related traditional casino-entertainment vertical. We are excited by the depth and quality of some of the conversations that we are now having with some of the leading players in these industries.
“These were largely the result of our acquisition of Gambit and we are confident we will see resulting near-term revenue opportunities for our SnippCARE Platform as a result. In addition, we have also already completed a base integration with Gambit’s Loyalty Gaming Platform and have commenced offering Gambit Token Gift Cards as an integral part of the SnippREWARDS module thereby providing our existing clients with access to a truly unique reward experience that taps into the online gaming & sports betting super trend.
“We are now the exclusive avenue through which our roster of Fortune 500 clients (and other permitted resellers) can incentivize their customers with gift cards to engage in igaming and sports betting on the Gambit Loyalty Gaming platform. Since announcing the acquisition Gambit has also gained further distribution into new resellers and we look forward to sharing the completion of the integrations with these new resellers in the coming months as they bring the Gambit card online within their networks.”
Gambit, the consumer-focused platform that integrates loyalty programs, launched in 2019 aiming to ‘gamify’ the rewards program experience. Players can redeem loyalty points for cash winnings, cryptocurrencies and charity contributions amongst other prizes.
Another term of the transaction deal ensures that Gambit shareholders can also qualify for a further payout in three years, subject to revenue targets being met at pre-defined margins.
Richard Pistilli, Gambit CEO, added: “We have witnessed a very positive response from the market since joining the Snipp family. In January, we launched a first-of-its-kind joint promotion with a leading gaming operator across live sports bars during the Superbowl. We are also now working with several of the largest digital gift card networks, as well as our first major partner in the consumer survey and incentives space.
“We expect to add dozens of new rewards programs to our platform over the coming months as we leverage the Snipp network and expertise to accelerate our go-to-market strategy.”