Aspire Global Plc has entered an agreement to acquire 100% of the shares in GMS Entertainment Limited, owner of the B2B group Pariplay, for approximately €13.1 million in cash.

Pariplay operates one of the leading game aggregator platforms worldwide, including their own game studios, providing operators with access to thousands of game titles from leading game producers. The acquisition allows Aspire Global to control yet another crucial part of the iGaming value chain – creating synergies, broadening the game portfolio and providing a channel to distribute and sell propriety games outside Aspire Global’s network.

The transaction is to be closed during the third quarter of 2019 with positive effect on the company’s EBITDA as of 2020. For 2019 however, the transaction is not expected to have any material effect on financial results.

Aspire Global acquires Pariplay, strengthening the B2B-business through external game sales, in line with the M&A strategy. Pariplay is a leading B2B iGaming provider operating one of the largest content aggregating platforms and producing successful casino content in their own game studios. Moreover, Pariplay has cleared an iGaming certification for New Jersey, representing a potential growth opportunity as US operators will be gaining access to Pariplay’s gaming content.

“We are very excited about the acquisition of Pariplay which is in line with our M&A strategy focusing on B2B-growth and external game sales. The integration of Pariplay grants us control of yet another crucial part of the iGaming value chain – cutting costs, broadening the game portfolio and providing a channel to sell propriety games outside Aspire Global network. Moreover, Pariplay holds an iGaming license for New Jersey, which could act as the spearhead of our future efforts to enter the US market”, says Tsachi Maimon, CEO at Aspire Global.

Pariplay produces best-in-class online casino games, including the recent successes Dragons of the North, Lucky Vegas and Parrot’s Gold. Their proprietary games are complemented by a diverse portfolio of more than 2,000 games from third-party providers including Microgaming, Quickspin and Evolution Gaming. Some of Aspire Global’s proprietary game titles will also be accessible through the aggregator, increasing sales to external operators who are connected to Pariplay, such as 888 and GVC Group.

“We are delighted to join the Aspire Global family as we enter the next stage of our journey and we believe that this agreement brings fantastic opportunities for the whole group. Both Pariplay and Aspire Global have reached solid positions as important B2B-providers in the iGaming market and we look forward to integrating the team and start realizing the high potential”, says Adrian Bailey, Managing director at Pariplay.

Pariplay group is held by GMS Entertainment, a private company based in Isle of Man. Aspire Global will be acquiring 100% of the shares GMS Entertainment Limited for approximately €13.1 million in cash. The team at Pariplay consists of around 70 gaming experts, the majority of which are based in Sofia, Bulgaria, where the main technology hub is located. Pariplay group holds iGaming licenses for the UK, Gibraltar, Curacao, Malta and Romania and their games are certified for most regulated iGaming markets in Europe, generating sales of around $3.2 million with positive net income in the first quarter of 2019.

“Pariplay has come a long way since the founding in 2011 and I am very proud of the whole team for their intense efforts and strong commitment over the years. I feel confident about sending the company off for the next phase of the growth-journey and I believe that the match with Aspire Global is great, allowing both operations to reach whole new levels. I look forward to following the progress”, says Gili Lisani, CEO and founder of Pariplay group.

The transaction is to be finalized in the third quarter of 2019 conditional on approval from authorities.  Pariplay group will be consolidated under Aspire Global’s financial statements upon closing, with positive effect on the company’s EBITDA as of 2020 thanks to growth, synergies and cost savings. For 2019 however, the transaction is not expected to have any material effect on Aspire Global’s financial results.