Wow, it seems Evolution has a plan to buy every available company in the industry. After acquiring NetEnt in September 2020, it has now entered into an agreement to add Big Time Gaming to its portfolio. Let’s just hope this acquisition will not have as bad a rep as the NetEnt one! In the official public statement, the live gaming provider mentions the total consideration of up to €450 million! The amount can be paid in cash and Evolution shares. It is believed that the deal will be closed by the end of Q2 2021, which is pretty near. Evolution should hurry up, as those papers won’t sign themselves!
Big Time Gaming is best known for its Megaways feature and hit titles like Bonanza, Survivor, and Monopoly Megaways. What makes it so special is that the Megaways feature proved to be a very lucrative business opportunity. BGT has equipped more than 200 titles by different providers with this exciting new way of gaming.
Jens von Bahr, chairman at Evolution, explained that adding BGT to the Evolution portfolio is a strategic decision. He sees the brand as innovative, creative, and one of the biggest brands in the industry. Von Bahr also explained that this will further strengthen Evolution’s position on the market. In 2020, BGT’s EBITDA was €29 million, with €33 million in revenue. Those are some fine-looking numbers, right there!
Nik Robinson, chief executive at Big Time Gaming, added that both are driven by innovation. He predicts a bright and entertaining future for all their customers.
According to the public statement, Evolution is ready to pay €220 million up-front. €80 million will be paid in cash, and the rest will be paid in Evolution shares. The shares will be valued based on the period between March 23 and April 7, 2021. Evolution expects to issue 1,120,000 shares in the above-mentioned period, on the Nasdaq Stockholm.
Furthermore, the Swedish live supplier will also pay earn-out payments for 2022/23 and 2023/24. The amount will be calculated based on BTG’s EBITDA. The maximum Evolution is willing to pay for earn-outs is €230 million. The earn-out will be paid in 70% cash and 30% newly issued Evolution shares unless otherwise agreed.
Evolution was founded in 2006 and quickly revolutionized the way live casinos operate. Since the very beginning, the company was focused on delivering the most authentic and realistic casino experience to homes around the world. Acquisitions are nothing new for Evolution. In 2018, this brand added Ezugi to its portfolio, followed by NetEnt, NetEnt Casino, and Red Tiger in 2020. After making a bid for NetEnt, Evolution openly admitted that it aims to become the biggest casino supplier in the world. Well, it definitely wasn’t joking! Even though the NetEnt deal experienced a lot of negative media coverage, it didn’t hurt Evolution’s reputation among customers. Now that the dust has settled, it’s time to buy another brand on the market.
The company holds an impressive number of licenses including MGA, Gibraltar, UKGC, and Belgium ones. It can also legally operate on the other side of the Atlantic thanks to Canadian and US licenses. And from the way things are now, it really is on the path to becoming the biggest gaming company in the world.