Adventure Box, the Swedish-based gaming company known for its social gaming platform KoGaMa, has entered into a strategic letter of intent that would enable it to acquire 100% of Lion Gaming. This acquisition, valued around SEK475 million (approximately $44.9 million/€41.7 million/£35.3 million), signifies a substantial step for Adventure Box as it ventures into the rapidly evolving igaming market. The deal is anticipated to be finalized in the second half of 2024, contingent on the successful negotiation of finer details.
Headquartered in Stockholm, Adventure Box has carved a niche in the online gaming community with its KoGaMa platform, which boasts a user base of around 30 million people globally. This platform is distinguished by its social gaming features, which encourage user-generated content and community interaction, making it a significant player in the broader online gaming ecosystem.
Meanwhile, Lion Gaming, with operational bases in both North America and Europe, is renowned for providing white label and turnkey solutions for casino and sportsbook services. With a projected turnover of approximately SEK350 million and an EBITDA of approximately SEK180 million in the upcoming year, Lion Gaming exemplifies robust growth potential within the igaming sector.
In an official statement, Adventure Box heralded the acquisition as the dawn of a new era for the company, marking its expansion into the international igaming market. “A new major gaming company is taking shape in Sweden, ready for the global igaming market,” the statement read, emphasizing the strategic importance of this move.
Mads Jørgensen, chairman of Adventure Box, elaborated on the anticipated benefits of the acquisition, noting the complementary strengths of both companies’ platforms. “We see opportunities for synergies between the KoGaMa platform and Lion’s gaming platform. This acquisition lays the foundation for a global player,” Jørgensen stated.
Adventure Box also disclosed that the transaction enjoys strong support from major shareholders within Lion Gaming. Currently, Lion Gaming has about 70 shareholders, encompassing a mix of financial institutions, individual investors, and venture capitalists from North America, Europe, and other regions.
. This broad base of support is seen as a solid bedrock for future collaborative endeavors.
The alignment of visions between Adventure Box and Lion Gaming is a central theme in this acquisition. Both companies share a forward-looking approach to the gaming market, particularly with regard to the integration of emerging technologies and platforms. “Adventure Box and Lion share the same vision for the gaming market, especially with synergies between the KoGaMa platform and Lion’s gaming platform and universe, including Web3 development and cross-user acquisition,” the statement added. This collaborative vision is expected to facilitate new opportunities in game development while aligning with Adventure Box’s strategic objectives.
Lion Gaming’s portfolio includes several subsidiary brands such as MAMMOTH Workshop, Fer0x, and Aggretron. Additionally, Lion Gaming is well-regulated, holding multiple licenses such as B2B and B2C licenses in Malta and a gaming license in Curaçao. This regulatory framework positions Lion Gaming as a reputable and compliant entity within the igaming market.
Duncan McIntyre, CEO of Lion Gaming, expressed optimism about the merger, highlighting the potential for growth and development that Adventure Box’s resources and expertise could bring. “We look forward to becoming part of Adventure Box,” McIntyre said. “We will benefit from their extensive experience and resources to further develop our business.”
He further noted that the merger would enable Lion Gaming to harness synergies and bolster its global presence. “This merger gives us the opportunity to benefit from synergies and strengthen our presence globally. We are confident this transaction will provide us with the tools and support we need to continue to be a leader in igaming technology. This is through organic growth and acquisition of new businesses.”
As Adventure Box and Lion Gaming move forward with finalizing this acquisition, the industry will keenly observe how this new major player will navigate the competitive landscape of the global igaming market. The merger not only signifies a strategic expansion for Adventure Box but also heralds a potential reshaping of the igaming environment as these two entities combine their unique strengths and visions.
