Among all other goals it seems like, for Evolution Gaming, expansion is at the top of their list. There was news regarding the fact that the online casino brand of Swedish origin is expecting to sign an agreement that gives them the permit to acquire Big Time Gaming. Big Time Gaming is an online slot machine developing company that has already earned a reputation of popularity among self-excluded users or even the ones with even little knowledge about online gambling.
Evolution and Big Time Gaming Union
The deal was signed in lieu of 535 million dollars through both cash and shares of Evolution Gaming. Evolution Gaming has been under operation since 2006 and is now a leading B2B provider under which there are more than 500 operators. Licensed by the Malta Gaming Authority; it is regulated by many jurisdictions like the UK, Belgium, Canada, Romania, South Africa, and so on.
Big Time Gaming is quite well known and is mostly recognized by the popular slot titles that aren’t on GamStop exclusion that they developed including Bonanza, Extra Chilli, Game Mechanic Megaways, and so on. They have a variety of games to offer to punters all across the globe that would suit every taste. It is the best choice for more than 350 operators worldwide. Based in Australia, Big Time Gaming offers punters to win in 117649 ways.
According to the Chairman of Evolution Gaming, Jens von Bahr, his company is successful in securing a position of leadership in providing digital casino games to the punters worldwide by strategically adding Big Time Gaming to the portfolio of them that too by strengthening their reputation. He added that the motivations of Big Time Gaming are compatible with the same of Evolution Gaming since they have their focus fixed on bringing innovation and curation of new player experiences by adding unique features to the world of iGaming. This will only add to the goals and image but Evolution Gaming has created in the market. The chairman is looking forward to the collaborative efforts of the two companies and expecting a greater return.
According to the statistical data available, the revenue of Big Time Gaming turned out to be 39.3 million dollars, with a 34.5 million dollars EBITDA. This transaction is expected to bring good results to the Evolution Group contributing positively to it in the year 2021.
The CEO of Big Time Gaming, Nik Robinson commented on the union saying that both the companies, Evolution Gaming and Big Time Gaming are motivated by bringing innovation to the table and as a result are perfect in the collaboration. Moreover, he is hopeful towards the success of this step among the players.
The Deal in Details
The transaction that took place between Evolution and Big Time Gaming required an upfront payment of 262 million dollars from Evolution Gaming. Evolution Gaming is expected to pay off the earnout amounts depending upon the EBITDA of Big Time Gaming for the years 2022 to 2023 and 2023 to 2024. These payments can add up to a maximum limit of 274 million dollars and will turn into a payable amount by the years 2023 and 2024. 95 million dollars are subjected to be paid in cash as upfront consideration on the remaining will be paid as shares of the Evolution Group.
According to the contract, the amount that is to be paid in shares as a part of the upfront consideration will be cleared at and during the completion of the entire transactional process. The evaluation of the shares of evolution gaming will be done at a price that will be calculated upon the volume-weighted average price of the shares of Evolution Gaming within the region of Nasdaq, Stockholm ranging from March 23rd to April 7th. The expectant share which will be issued is around 1120 000. The conditionality of the transaction completion is completely dependent on the receipt issued by regulatory approvals.
It is expected to be taken place by the second quarter of 2021. The activity of evolution gaming has been noteworthy as they are successful in getting various deals with digital casino operators in the states of New Jersey, Michigan, and Pennsylvania considering the fact that it is completely legal to engage in online gambling activities in those states and additionally West Virginia and Delaware.
