Evolution is a Stockholm-listed casino supplier. It has recently finalized its purchase of the slots developer, Big Time Gaming. After the making of the initial agreement in April, Evolution got all of its regulatory approvals for the finalization of the transaction. The company has recently paid an up-front sum amounting to EUR 220 million in a combo of EUR 80 million in cash and the rest in the form of Evolution shares.
The company now will also pay an earn-out based on the EBITDA of Big Time Gaming for the fiscal years of 2021/23 and 2023/24. It is up to a maximum of EUR 230 million. It includes 70% in cash and 30 % in Evolution shares, which have been issued.
The board of Evolution has decided to issue 1105032 new shares as a result. The Big Time Gaming sellers are getting accrued by the right of subscribing to newer shares. At the same time, it also includes those who have subscribed for the shares against a set of receivable EUR 140 million against these newly issued shares.
The subscription price amount of the issue is about €126.72 per share. It is equivalent to the volume of the weighted average price for the share of Evolution on the Nasdaq Stockholm during the period of 23rd March to 7th April 2021. The Shares in Evolution AB (STO: EVO) were trading near 1.01% higher at the SEK1366.00 per share in Stockholm on Thursday morning.
Evolution entered into this acquisition discussion with Big Time Gaming in the April of this year. This agreement was expected to close at the end of Q2 that turned out to be true. The total amount of consideration at this time was nearly EUR 450 million.
In December, Evolution made the finalization for the purchase of NetEnt. The company came as the de-facto owner for the Game Mechanic Megaways engine, which allows users with 117649 paylines.
As a reputed casino supplier, Evolution has made its growth reaching out to the pioneer of success. Now their acquisition of Big Time Gaming is proof of their success. Big Time Gaming is another reputed developer in this market that is thinking of making its success go in the right direction for enhanced popularity. Hence, this acquisition will pump up the growth of both companies. At the same time, gaming enthusiasts will get access to more exciting slots and game titles. Also, it will boost the portfolio of the companies.