Evolution Gaming has entered into an agreement to acquire the entire issued share capital of Nolimit City for an upfront consideration of €200 million. With earn-outs of up to €140 million, the total consideration can reach up to €340 million, payable in cash.
Nolimit City is an innovative, world-leading producer of online slots that has built its own niche in the market through games with at times having provocative themes and a witty touch. The games of Nolimit City truly stand out and offer players a unique and graphically rich gaming experience. Nolimit City titles include award-winning games such as Mental, Book of Shadows, Deadwood, San Quentin xWays and Tombstone RIP.
This acquisition is in line with Evolution's strategy of being the number one provider of online casino games in the world, supplying customers with the best gaming content. With the Nolimit City brand, Evolution further expands its portfolio of world leading slot brands that already includes Big Time Gaming, Red Tiger and NetEnt.
Evolution chairman Jens von Bahr said:
"With the addition of Nolimit City to the Evolution family we extend our portfolio of truly innovative and cutting edge games from the top brands and game makers in the industry. We have followed Jonas, Emil and their team for a few years and been impressed as they have established a completely new style of slot games. I am proud that yet another of the very best minds in our industry has chosen to join the Evolution network."
Nolimit City co-founder Jonas Tegman stated:
"I cannot think of a better match between two companies than between Nolimit City and Evolution, we are fully aligned in terms of people, product, technology, and how to get the job done. The slot vertical is under massive change, and we can't wait to take on the challenge of global expansion together with Evolution, helping out with navigating towards the best slot product offering in the market."
Nolimit City revenue is expected to amount to €30 million, with an EBITDA of €23 million for the calendar year 2022.
The transaction will contribute positively to 2022 EPS for the Evolution Group.
Consideration and financing
The total upfront consideration payable by Evolution in the transaction is €200 million, on a cash and debt-free basis. The consideration is financed from cash at hand.
Also, Evolution may pay earn-out payments in cash, based on based on Nolimit City's EBITDA for the years 2022, 2023 and 2024. The earn-out payments will amount to a maximum of €140 million, and become payable in 2023, 2024 and 2025.
Time plan for the acquisition
Completion of the transaction is conditional upon receipt of regulatory approvals, and is expected during the third quarter of 2022.
About Evolution Gaming
Evolution AB develops, produces, markets and licenses fully-integrated B2B Online Casino solutions to gaming operators. Founded in 2006, Evolution Gaming has developed into a leading B2B provider with 600+ operators among its customers, including 888casino, Betsson, Entain (partycasino), Mr Green and LeoVegas. The group currently employs 13,000+ people in studios across Europe and in North America. The parent company is based in Sweden and listed on Nasdaq Stockholm with the ticker EVO.
Evolution Gaming is licensed and regulated by the Malta Gaming Authority under license MGA/B2B/187/2010. Evolution is also licensed and regulated in many other jurisdictions such as the United Kingdom, Belgium, Canada, Romania, South Africa, and others.