It was just announced that the notable Swedish iGaming juggernaut Evolution Gaming, famous for its live casino games and software, is about to make a purchase. The company is set to buy the notable Megaways developer Big Time Gaming (BTG) before the end of the second quarter of 2021.
The agreement has already been made, and Evolution is ready to pay €450 million or $534.5 million in cash and shares of the Evolution company.
Payments Are to Be Based on Big Time Gaming Earnings
Evolution has made the full upfront consideration of €220 million (261.6 million), but the company is still set to pay earnout amounts to BTG. These payments were calculated based on the earnings before interest, tax, depreciation, and amortization (EBITDA) the Megaways developer was set to make for the fiscal years of 2022-2023 and 2023-2024.
Big Time Gaming’s EBITDA for 2020 was €29 million ($34.5 million) on revenues of €33 million ($39.2 million).
The payments cannot surpass a total of €230 million ($273.5 million), and Evolution will pay them out in 2023 and 2024.
70% of the payments are to be made in cash, and 30% in Evolution shares.
Overall, the cash will amount to €80 million for the upfront consideration, while the expected number of shares Big Time Gaming is set to get will be 1.1 million.
Evolution Is Moving Through the iGaming Industry Fast
Evolution is keen on acquiring several major software providers in the world of iGaming. Just last year, the Swedish company acquired the famous giant of the iGaming industry — NetEnt.
The deal was made in November, and it amounted to a total of SEK19.60 billion ($2.3 billion).
It was clear that Evolution was looking to become the global online gaming industry leader when it bought NetEnt. With this latest acquisition, it’s certainly on its way to becoming one.
In 2019, the revenues were €365.9 million ($435 million), while the 2020 numbers amounted to €561.1 million ($667.1 million).
The increase in total profits was even higher — 90.1% when compared to 2019. This amounted to €283.6 million ($337.2 million).
A big part of the increase was due to the NetEnt acquisition, so a similar thing is expected from the BTG acquisition, albeit with lower increases.
Jens von Bahr, chairman of Evolution, said:
“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.”
The chief executive of Big Time Gaming, Nik Robinson, has added that he expects “a bright and entertaining future” for both companies’ fans. He firmly believes the two companies share the same innovation-driven vision.
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Bethany has been working in online gambling for over 13 years. She got her start in the industry as her first job after graduating from the Professional Writing Program at York University. Having written for many online gaming publications and worked with top casino operators, she has unique insight into the gambling market. Bethany maintains a personal interest in iGaming as she continues to play poker online as a hobby.