Evolution Gaming Group Buys Big Time Gaming For €450 Million
Evolution Gaming Group (EGG) has made another strategic purchase in order to expand its portfolio and solidify its position as a premium software supplier in the online gaming industry. This time they made a move to acquire Australia-based Big Time Gaming in a deal estimated to be worth north of €450 million.
In 2020, EGG bought NetEnt for roughly €1.8 billion and immediately became the single biggest supplier of live casino games and products. This settlement was delayed slightly by the UK’s Competition and Markets Authority but was eventually given the green light.
Big Time Gaming has produced a few slots that quickly became favourites among players around the world. Titles like Bonanza, Extra Chilli, and Monopoly Megaways are all staples in online casinos. But it was the advent of the Megaways game mechanic that really put the company on the map.
Megaways is protected under a trademark and licensed to other game developers that wish to beef up their games and make them more attractive to players. This game mechanic has currently been incorporated in over 200 games from multiple providers.
Leading provider of digital casino games
Both Evolution and Big Time have proven to be at the forefront of innovation in the iGaming industry, making this acquisition seem pretty straightforward. This message was echoed by both companies’ CEOs.
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players,” said Nik Robinson, CEO of Big Time Gaming.
“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,” Jens von Bahr, CEO of Evolution Gaming, said.
“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 our journey together.”
Rolling payment plan
To conclude the transaction, Evolution will pay €220 million up-front and earn-out payments based on Big Time Gaming’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the years 2022/23 and 2023/24 to a maximum of €230 million.
The initial payment will be split into €80 million in cash with the remaining €140 million in newly issued Evolution shares. The shares will be valued at a price equivalent to the volume weighted average Evolution share price on Nasdaq Stockholm for the March 23 – April 7-period, 2021.
If all goes to plan and there are no regulatory objections, the deal is expected to conclude during the second quarter of 2021.
As of April 13, 2021, after the deal was announced Evolution Gaming share price climbed by 2.3026% and opened at 1,355.20 SEK on the Stockholm Nasdaq compared to 52 weeks ago when the price stood at 463.15 SEK per share.
Speculators are already questioning whether investing in the company is such a wise decision as there’s no telling what the future holds for the business in the coming 12 months.
