Evolution Enters Agreement to Buy Big Time Gaming
Popular live casino provider Evolution Gaming has announced its plans to acquire innovative slot developer Big Time Gaming. This business deal is worth 450 million euros in total, payable both in cash and shares.
With revenues of 33 million euros in 2020 and an operating profit (EBITDA) of 29 million euros, Big Time Gaming is undoubtedly going to be a valuable addition to the Evolution network. This acquisition is going to provide Evolution with ownership over highly popular slot releases such as Bonanza and Extra Chilli as well as groundbreaking Megaways mechanics, included in the gameplay of over 200 games on the market.
Jens von Bahr, Evolution Gaming chairman, 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 mindset at Evolution. We look forward to continuing our journey together.”
The deal closure is expected to happen by the end of Q2 2021. The total up-front consideration payable by Evolution in the Transaction is 220 million euros. In addition, Evolution will pay earn-out payments, based on Big Time Gaming’s EBITDA for the years 2022/23 and 2023/24, respectively. The earn-out payments will amount to a maximum of EUR 230 million, and become payable in 2023 and 2024, respectively.
These will be payable 70% in cash and 30% in newly issued Evolution shares. As part of the up-front consideration, the shares will be valued at a price equivalent to the volume-weighted average price of the Evolution share on Nasdaq Stockholm during the period 23rd March – 7th April 2021 (an expected issue of 1,120,000 shares).
Nik Robinson, Big Time Gaming CEO, said:
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits our players”
Just several months ago, on December 1, 2020, Evolution Gaming has finalized an agreement with NetEnt, one of the most respectable software providers on the online gambling scene. NetEnt deal, worth SEK19.60bn (£1.72bn/€1.91bn/$2.30bn), in combination with the announced Big Time Gaming acquisition happening now clearly show that the Swedish company has plans to establish itself at the very top of the online gambling industry.