Gaming giant Evolution is set to purchase Big Time Gaming after entering into an agreement to acquire the developer for a total consideration of up to €450m, payable in cash and shares, and assert its position as ‘the leading provider of digital casino games in the world’.
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.
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.
“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,” commented 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.
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.
“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players,” added Nik Robinson, CEO of BTG.
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.
The announcement follows on from its acquisition of NetEnt, which was finalised on December 1, 2020.
Speaking to SlotBeats earlier in the month, Jeff Miller, Evolution’s commercial director for North America, said: “Clearly, when you are entering markets where they have been very used to a style of slot in another vertical – in this case, land-based – it makes sense to provide familiar touch points.
“For example, the portfolios of NetEnt and Red Tiger include lots of games that have many of the same play mechanics found in land-based casinos, such as free spin bonuses and progressive jackpots. Of course, both also have a long history of producing slots that are popular the world over and have genuine universal appeal.”