After adding to its ranks the Swedish online slots maker NetEnt in late 2020, live casino specialist Evolution Gaming is moving on to further enlarge its business by acquiring another big slots maker.
The company announced last month that it has struck a deal to buy online casino games developer Big Time Gaming (BTG) in a whopping €450 million deal. Subject to regulatory approval, the closure of the transaction is expected to happen during the second quarter of this year.
Evolution will pay €220 million upfront for BTG, payable €80 million in cash and the remainder in newly issued shares in the enlarged group.
Additionally, Evolution will make earn-out payments based on the slots studio's EBITDA for 2022-23 and 2023-24, respectively, that will amount to a maximum of €230 million and will become payable in 2023 and 2024. The earn-out consideration will be payable 70% in cash and 30% in newly-issued Evolution shares.
Based in Australia, Big Time Gaming has been around the online gaming realm for more than 10 years. The company has made its name well-known in 2016 when its unique creation, the Megaways mechanic, was rolled out and became so successful that in 2018 it had been integrated on slot games made by fellow slot maker companies. Now, the Megaways engine exists in over 200 online slots by a number of slot providers.
Evolution Gaming Chairman Jens von Bahr happily said, "With the addition of Big Time Gaming to our portfolio of slot brands we strengthen our strategic position as the leading provider of digital casino games in the world. Big Time's focus on innovation and creating unique playing experiences is a great fit with our culture and mind-set at Evolution. We look forward to continuing our journey together."
Elated with the agreement as well, Chief Executive at Big Time Gaming Nik Robinson said, "Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits our players."
This is the second-big acquisition deal by Evolution since over the past year. In June 2020, the live casino expert offered to buy NetEnt, valuing the online slots creator at SEK19.6 billion ($2.2 billion). The NetEnt acquisition was finalized in December 1, 2020.
- Highly recommended casinos offering games by Big Time Gaming:
when you look on one side,its great money for some company,450 million euros is big amount,but on other side,when you know that they have exclusive right on megaways slots and that nobody cant make something like this if they dont pay you and you will just grow every year,then this situation is very strange!I am sure that in this corona situation,they will grow,they will make news slots,they will earn more money,so they will have bigger value for sure and will have value for 700 or 800 millions,who know!
The best solution is to buy your competitors. You don't have to bankrupt them, you just have to buy their business. Then, you can have higher earnings and the money spent will be recovered in a few years, with the condition that rivals who sold, should not open a similar business.
They are not going to be stupid in buying to go bankrupt, they know that in these moments that we are passing from confinement it is opportune to invest more in online games, they know that they will recover it in a couple of years, everything will be fine for them. insurance.
Many evaluate the market before buying something that will be profitable in the coming years, companies like Facebook that bought Wasap and Instagram are a clear example that if we want to govern our business we have to be the first in everything, and now 450 million is not cheap at all but for sure they will do super well.
nobody say that they will bankrupt because of this,its just question why this company sold them this great business,because they will just earn more in future and their company will have even bigger value!they have right on all megaways slot,so they have everything in their hands!now everything will have evolution gaming!
the internet brings a lot of money if the economies of countries around the world are doing well. There are all kinds of sites, casinos or online stores and many other things that can enrich you. You need a little mind and after that earn money. Evolution Gaming makes a very good deal.
almost every week they make some new megaways slot,no matter that they give right to some company to make new slot or that they work on it,but we all see how they good are they in this business!thats why I dont understand why they had to make this early thing and to sold it,even in this year this company they will grow for sure!
the most important thing is that the acquisition it will recover much faster than necessary. Their power will be greater now and it is not to be regretted. Businesses like this are beautiful and with experience good things will be done here.
I wish that in a year there will be some figures with good profit, which will make in a few years from the purchase of this company to recover all the investment. I think it was a good deal, but i have no idea if there will be many customers. Anyway people play and sooner or later this thing will happen.
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