Evolution looks set to add another significant member of the igaming establishment, with the company entering an agreement to purchase Big Time Gaming for a total consideration of up to €450m, payable in cash and shares.
This comes hot on the heels of its acquisition of NetEnt, which was finalised on December 1, 2020, with the gaming giant asserting that the move comes as it looks to further strengthen its position in becoming “the leading provider of digital casino games in the world”.
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players,” noted Nik Robinson, CEO of BTG.
The total up-front consideration payable by Evolution in the transaction is €220m. In addition, Evolution will pay earn-out payments, based on BTGs EBITDA for the years 2022/23 and 2023/24, respectively. The earn-out payments will amount to a maximum of €230m, and become payable in 2023 and 2024, respectively.
The up-front consideration will be payable as €80m in cash and the remainder in newly issued Evolution shares. The cash part of the up-front consideration will be paid, and the share part will be issued at completion of the transaction.
The Evolution shares issued as part of the up-front consideration will be valued at a price equivalent to the volume weighted average price of the Evolution share on Nasdaq Stockholm during the period March 23 – April 7, 2021.
The earn-out consideration will be payable as 70 per cent in cash and 30 per cent in newly issued Evolution shares. It is anticipated that completion of the transaction, which is conditional upon receipt of regulatory approvals, will occur during the second quarter of 2021.
“With the addition of Big Time Gaming to our portfolio of slot brands we strengthen our strategic position as the leading provider of digital casino games in the world,” stated Jens von Bahr, chairman of Evolution.
“Big Time’s focus on innovation and creating unique playing experiences is a great fit with our culture and mind-set at Evolution. We look forward to continuing our journey together.”