Evolution to Acquire Online Slots Developer Big Time Gaming
Evolution Gaming is expanding.
On Monday, the Swedish online casino company announced it has entered into an agreement to acquire online slot machine developer, Big Time Gaming, for about $535 million in cash and Evolution shares.
Big Time Gaming has become renowned for its popular slot titles such as Bonanza, Extra Chilli and Game Mechanic Megaways, which has incorporated over 200 games from numerous providers, according to a news release.
“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,” Evolution Chairman Jens von Bahr said in a news release. “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.”
For 2020, Big Time Gaming’s revenue came to $39.3 million with an EBITDA of $34.5 million. The transaction is expected to contribute positively to the 2021 EPS for the Evolution Group.
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match,” Nik Robinson, CEO of Big Time Gaming, said in the release. “A bright and entertaining future awaits for our players.”
More Details of the Deal
The up-front consideration payable by Evolution in the transaction is $262 million. In addition, Evolution will pay earn-out payments, based on Big Time Gaming’s EBITDA for 2022-23 and 2023-24 respectively, the release said. The earn-out payments will amount to a maximum of $274 million and become payable in 2023 and 2024.
The upfront consideration will be payable as $95 million in cash and the remainder in newly issued Evolution shares. The share part of the upfront consideration will be issued at completion of the transaction, according to the release. The Evolution shares will be valued at a price equivalent to the volume weighted average price of the Evolution share on Nasdaq Stockholm from March 23 to April 7, with an expected issue of 1,120,000 shares.
Completion of the transaction is conditional upon receipt of regulatory approvals and is expected during the second quarter of 2021.
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