Evolution to Acquire Online Slots Developer Big Time Gaming
Evolution Gaming is expanding.
On Monday, the Swedish online casino company announced that it had reached an agreement to acquire online slots developer Big Time Gaming for approximately $535 million in cash and Evolution stock.
Big Time Gaming has become famous for its popular slot titles such as Bonanza, Extra Chilli and Game Mechanic Megaways, which has integrated more than 200 games from numerous providers, according to a press release.
“With the addition of Big Time Gaming to our portfolio of slots brands, we are strengthening our strategic position as the world’s leading provider of digital casino games,” said Evolution Chairman Jens von Bahr, in a press release. “Big Time’s focus on innovation and creating unique gaming experiences fits perfectly with our culture and mindset at Evolution. We look forward to continuing our journey together.
For 2020, Big Time Gaming revenue was $39.3 million with an EBITDA of $34.5 million. The transaction is expected to contribute positively to Evolution Group’s 2021 EPS.
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect combination,” said Nik Robinson, CEO of Big Time Gaming, in the release. “A bright and entertaining future awaits our players.”
More details on the agreement
The initial consideration payable by Evolution in connection with the transaction is $262 million. In addition, Evolution will make additional payments, based on Big Time Gaming’s EBITDA for 2022-23 and 2023-24 respectively, the statement said. The earnouts will amount to a maximum of $274 million and will become payable in 2023 and 2024.
The initial consideration will be payable in the form of $95 million in cash and the balance in newly issued Evolution shares. The equity portion of the initial consideration will be issued upon completion of the transaction, according to the release. Evolution shares will be valued at a price equivalent to the volume-weighted average trading price of Evolution shares on Nasdaq Stockholm from March 23 through April 7, with an expected issuance 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.
Evolution has been active in closing deals with online casino operators in New Jersey, Pennsylvania and Michigan. Online casino gambling is legal in all three states, plus West Virginia and Delaware.
Be the first to receive our exclusive offers!
Sign up today to stay up to date on gaming news and offers from your state.