One of the leading gaming software providers – Evolution Gaming Group has most recently revealed that it will be expanding its gambling horizons. The content supplier has agreed to a deal for the acquisition of the prominent slot machine developer Big Time Gaming. The agreement between the companies can go up to €450 million in payable cash.
Big Times Gaming is considered one of the leading developers of slot machines. The company’s portfolio offers a broad range of innovative and fresh slot titles. Fans of the game will immediately recognize world-renowned titles as Bonanza and Extra Chili. The developer’s revolutionary game mechanic Megaways™ is used in over 200 games.
According to the chairman of Evolution Gaming – Jens von Bahr, the addition of Big Time Gaming to the supplier’s portfolio of slot titles will significantly improve their position as providers of online gambling solutions. In his words, both companies share a similar mindset of innovation and desire to create new and fresh gaming experiences for gambling enthusiasts.
The slot developer has documented €33 million of revenue and €29 million in EBITDA for the year 2020. And the acquisition of the company will positively contribute to the 2021 EPS of the gaming provider. Reports suggest the up-front fee that Evolution Gaming is willing to pay up to €220 million for the arrangement, and in the future, the company will pay earn-out payments based on the slot designer’s EBITDA.
It was reported that the up-front payment will consist of €80 million in cash and the rest will be paid in newly issued shares of the renowned content provider. The shares included in the upfront payment will be valued according to the Nasdaq Stockholm average rating of the stocks for the time frame of March 23 to April 7, 2021.
The earn-out agreement will also be partially paid in cash, as 70% of the consideration fee will be paid in cash and the other 30% in newly issued shares. Again, the shares will be valued according to the Nasdaq Stockholm rating and their value will be determined by the correspondent price when the shares were issued.
The gaming content leader of Evolution Gaming has previously agreed to supply the province of Alberta with its online portfolio of gaming offerings. This was possible with the company’s agreement with the province’s gaming regulator Alberta Gaming, Liquor & Cannabis Corporation. While land-based casinos are still closed down residents will be able to enjoy fan-favorite titles such as Roulette, Infinite Blackjack, Baccarat, and Ultimate Texas Hold’em.
The company has a major part in Quebec’s online offerings due to its 2019 deal with Loto-Québec. The partnership allowed the lottery corporation to use the premium set of services of the gaming provider and launch a Live Casino on its platform. Additionally, the company has British Columbia and Manitoba as its partners in Canada providing its first-class content to even more people in the country.
Source: “Evolution has entered into an agreement to acquire leading online slot machine developer Big Time Gaming”, Cision, April 12, 2021