Swedish iGaming innovator Evolution Gaming Group AB has announced the signing of an agreement worth approximately $536 million that is destined to see it purchase smaller Australian rival Big Time Gaming Proprietary Limited.
The Stockholm-listed firm used an official press release to detail that the arrangement is expected to close during the second quarter of the year after it has handed over some $95.3 million in cash as well as shares valued in the region of $166.8 million to investors in Big Time Gaming Proprietary Limited. The company moreover revealed that this will be supplemented by up to $274 million in ‘earn-out payments’ to be based on the performance of its latest acquisition over the course of the next two years.
Evolution Gaming Group AB is one of the world’s most prominent developers of live-dealer online casino games and last year spent slightly in excess of $2 billion so as to take over fellow Swedish iGaming innovator NetEnt AB. The firm’s Chairman, Jens Von Bahr, used the press release to describe Big Time Gaming Proprietary Limited as ‘the thought leader in online slots’ with its purchase destined to strengthen his own enterprise’s ‘strategic position as the leading provider of digital casino games in the world’.
Read a statement from Von Bahr…
“Big Time Gaming Proprietary Limited’s focus on innovation and creating unique playing experiences is a great fit with our culture and mind-set. We look forward to continuing our journey together.”
Evolution Gaming Group additionally declared that any subsequent ‘earn-out payments’ are to satisfied via a 70/30 cash-to-share ratio with the acquisition of Big Time Gaming Proprietary Limited expected to ‘contribute positively’ to its earnings-per-share performance for the year. It went on to disclose that the upfront issuance could encompass as many as 1.12 million of its own shares ‘valued at a price equivalent to the volume weighted average price’ for the two weeks from March 23.
For his part and Nik Robinson serves as the Chief Executive Officer for Sydney-headquartered Big Time Gaming Proprietary Limited and he stated that his organization last year recorded earnings before interest, tax depreciation and amortization of about $34.5 million courtesy of aggregated revenues that topped $39.3 million. He furthermore explained that his firm’s titles include player favorites such as Extra Chilli and Bonanza in addition to its innovative Megaways game mechanic, which has been integrated into over 200 video slots from multiple developers around the world.
A statement from Robinson read…
“Evolution Gaming Group AB and Big Time Gaming Proprietary Limited are both driven by innovation, hence the perfect match. A bright and entertaining future awaits our players.”
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