Leading Swedish iGaming innovator, Evolution Gaming Group AB, recently publicised a newly signed agreement to the tune of $536 million that will see it purchase rival Australian developer, Big Time Gaming Proprietary Limited.
In an official press release, Evolution laid out the details of the arrangement that is expected to close during the second quarter of the year, following a payment of $95.3 million in cash as well as shares valued at approximately $166.8 million to investors in Big Time Gaming Proprietary Limited.
The firm also revealed that this would be bolstered by up to $274 million in ‘earn-out payments’ based on the performance of the new acquisition over the next two years.
Evolution Gaming Group AB stands out as a prominent global developer of live-dealer online casino games. In 2020, the company spent just over $2 billion in a takeover of major iGaming innovator NetEnt AB.
In the press release, Evolution’s chairman, Jens Von Bahr, described Big Time Gaming as ‘the thought leader in online slots,’ saying that the purchase would boost his company’s ‘strategic position as the leading provider of digital casino games in the world’
Von Bahr continued, saying,
“Big Time Gaming Proprietary Limited’s focus on innovation and creating unique playing experiences is a great fit with our culture and mindset. We look forward to continuing our journey together.”
Evolution further stated that any following ‘earn-out payments’ would be completed via a 70/30 cash-to-share ratio with the acquisition predicted to grow its earnings-per-share performance for the year. The release also stated that the initial issuance may include 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.
Nik Robinson, the CEO at Big Time Gaming Proprietary Limited said that his organization recorded earnings before interest, tax depreciation and amortization of about $34.5 million over the last year, thanks to aggregated revenues that totalled $39.3 million. He also elaborated that his firm’s titles included highly popular games such as Extra Chilli and Bonanza and that its innovative Megaways game mechanic has been integrated into more than 200 video slots from various developers.
Robinson concluded, saying,
“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.”