Evolution Strikes a Deal to Acquire Big Time Gaming for €450m

Exciting news in the world of online casinos! Industry giant Evolution has announced their acquisition of popular slot developer Big Time Gaming . The deal, valued at €450m/£389m/$534.5m, will be paid in cash and company shares and is expected to close by the end of the second quarter.

Evolution is a leading provider of online casino games to operators worldwide. The initial payment for the acquisition will be €220m, with additional payments based on BGT’s earnings between 2022 and 2024. BGT reported a revenue of €33m and an EBITDA of €29m in 2020.

A maximum of €80m will be paid upfront in cash, with the remainder being paid out in newly launched Evolution stocks. The earn-out payment totals €230m and will be made partially between 2023 and 2024, with the remaining amount being paid out in cash and shares.

Evolution has enlisted law firm Wiggin LLP as their lead advisor for this transaction, along with Deloitte, Addisons, Gernandt & Danielsson providing assistance. BGT has also appointed teacher Stern, Oakvale Capital LLP, and BDO as advisors for the deal.

Why This Deal Matters

Big Time Gaming is a major player in the world of online slots, with popular titles such as Extra Chilli and Bonanza. Their Megaways mechanic has been integrated into over 200 games, making them a highly sought-after developer.

Jens von Bahr, Chairman of Evolution, shared his excitement about the acquisition saying, “With Big Time Gaming on board, we aim to further enhance our gaming portfolio and solidify Evolution’s position as a global leader in the iGaming market. BGT’s commitment to creating unique player experiences aligns perfectly with our future goals, and we can’t wait to deliver amazing content for players.”

The Future Looks Bright

This recent acquisition follows Evolution’s takeover of renowned software developer NetEnt in November 2020. The estimated value of this deal was SEK19.60bn/€1.91bn/£1.72bn/$2.30bn.

The initial bid by Evolution to acquire NetEnt was made in June 2020, with the goal of becoming a global leader in the iGaming industry. This latest acquisition of Big Time Gaming further solidifies their position in the market.

In their financial results for the previous year released in February 2021, Evolution reported a 53.4% increase in revenue to €561.1m and a profit of €283.6m after all expenses were accounted for, representing a 90.1% increase since 2019.