Evolution Gaming has embarked on the latest step of its global expansion strategy, after agreeing an all cash $12m deal for live dealer gaming provider Ezugi.
Containing a possible additional consideration of a maximum of $6m, it is expected that via the purchase two to four per cent is to be added to the company’s 2019 revenue stream, as well as being slightly accretive to Evolution earnings per share during the same year.
Martin Carlesund, Evolution CEO, said of the announcement: “I am pleased about this agreement. It is a very logical next step for Evolution which will increase our market share in key existing markets, like the US, where Ezugi’s presence and customer base will add to our ongoing market expansion, as well as add licensees in new markets, such as South Africa.”
Boosting Evolution’s geographic footprint, in addition to accelerating growth in a variety of key markets, Ezugi, operating from a number of global studios, delivers B2B mobile and web live dealer solutions to online operators, land-based casinos and betting shops.
Amongst its key markets are Europe, Latin America and South America, in addition to New Jersey and Oklahoma within the US, where Evolution and Ezugi are the only operating live casino providers.
Kfir Kugler, CEO and founder of Ezugi, explained: “Announcing this agreement gives me great satisfaction. Ezugi has come a long way since it was founded in 2012, and becoming part of Evolution marks the right next step for us.
“Evolution’s superior offering in areas such as streaming quality and speed, user experience, game choice and all-round operational excellence will help bring the service of the current Ezugi operators to the next level.”
Coming just three months after the firm launch its ninth worldwide studio, and first in the US, it hoped an acceleration of product development and operational capacity will also be felt as a result of the acquisition.
“This strategic deal will see Evolution increase its geographic footprint and accelerate growth,” stated Evolution chairman and founder Jens von Bahr. “It will enable us to fast-track the accessibility to Evolution’s top-ranking software, as well as to support continued industry leadership by adding well-established development teams and operational resources.”
Completion of the transaction is scheduled for early 2019, and is subject to certain closing conditions.