Bragg Gaming is continuing to execute on its US gaming aspirations after the igaming tech and content provider announced a deal to acquire Las Vegas-based Wild Streak Gaming for $30m.
The acquisition of the content creation studio, which has a portfolio of 39 slot titles supported across online and land-based applications, follows last month’s deal to acquire Spin Games in a $30m cash and stock transaction.
Upon completion of the two, Bragg says that it will have successfully executed on a strategy of acquiring “the essential resources and technology assets required to become a tier one vertically integrated B2B gaming business operating in US and Canadian market”.
Pursuant to the transaction, which closed simultaneously with the signing of the purchase agreement, the sellers of Wild Streak received $10m in cash and will gain $20m worth of common shares of Bragg over the next three years, subject to acceleration in the event of a change of control.
“In an industry where premium content is king, Doug and his team have built up an enviable track record of developing leading premium casino slot content for both the land-based and online casino industry,” said Richard Carter, CEO of Bragg Gaming.
“We look forward to integrating this know-how into Bragg’s overall offering and significantly expanding the company’s higher margin proprietary in-house casino slot content capabilities.
“We expect this transaction to be materially enhancing to both revenue and EBITDA in the first full year of ownership, as well as strategically compelling given Wild Steak brings a wealth of US market casino games insights into the group, including valuable game designs, advanced game mechanics and features that are specifically tailored for and proven in the US market.
“We welcome Doug and the whole Wild Streak team onboard, and we look forward to leveraging Doug’s expertise to lead our US and global content creation strategy.”
The deal will see Doug Fallon, founder and CEO of Wild Streak, join Bragg as managing director of group content, where he will play a key role in leading the group’s US content strategy.
He will also collaborate closely with the European development staff to facilitate the cross-selling and repackaging of Bragg’s proprietary content for US operators.
Wild Streak reported $1.05m in revenue and $233,000 of EBITDA in FY2020, and $487,000 in revenue and $241,000 of EBITDA achieved during the first quarter of 2021.
“Richard and the Bragg Gaming executive team have put in place the strategy and key components to accelerate their growth and market share in the igaming market, and Wild Streak is excited to be a cornerstone for their growth strategy,” commented Fallon.
“We are highly impressed with the Oryx Gaming technology stack’s robust foundation and their roadmap for additional capabilities in development. We are looking forward to working with the Oryx team to create unique player experiences as we embed their technology into our game designs.
“As the trends indicate, much of the historical content designed for Europe does not resonate with the traditional American player, and we believe our background is an ideal fit for the Bragg Gaming Group as it focuses on this emerging market.”