Evolution progresses with €450m takeover of Big Time Gaming

Evolution Gaming Group AB has entered into an agreement to acquire Big Time Gaming for a total cash bid of up to €450 million.

Identified as a ‘thought leader in online slots,’ the acquisition of Big Time Gaming will enable Evolution to take advantage of popular titles such as Bonanza and Extra Chilli as well as the Game Mechanic Megaways, which is integrated into over 200 games from multiple developers.

Big Time Gaming’s 2020 revenue totalled €33 million with an EDITDA of €29 million. Evolution’s total transaction has been estimated by the firm to contribute positively to its 2021 EPS.

“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,” said 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.”

Evolution’s total up-front consideration payable in the transaction is 220 million, with 80 million payable in cash and the remainder in newly issued Evolution shares.

The share segment of the acquisition will be issued upon completion of the transaction, with the shares valued at a price equivalent to the volume weighted average of company shares on the Nasdaq Stockholm stock exchange from 23 March to 7th April 2021. This translates to an expected issue of 1,120,000 shares.

Additionally, Evolution will pay earn out payments, based on Big Time Gaming EBITDA for the years 2022/23 and 2023/24 respectively, which will amount to a total of 230 million, payable in 2023 and 2024.

The earn-out consideration will also be divided between cash and shares, with 70% payable in cash and 30% in newly issued Evolution shares, again valued at a price equivalent to the volume weighted average price of Evolution shares on the Nasdaq Stockholm exchange at the time the earn-out shares are issued.

“Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players,” remarked Nik Robinson, CEO, Big Time Gaming.

The transaction follows December’s acquisition of NetEnt by Evolution, conducted for SEK 19.6bn (€1.8bn), allowing the latter to gain approximately 96.8% of shares in the Stockholm-listed casino developer.