Evolution Strikes a Deal to Acquire Big Time Gaming for €450m

The highly successful Live Casino company Evolution is set to acquire the renowned Megaways slot developer Big Time Gaming , in a deal worth €450m/£389m/$534.5m. The payment will be made through a combination of cash and company shares, and is expected to be completed by the end of the second quarter.

Evolution is known for its creation and licensing of top-notch online casino games for operators worldwide. As part of the deal, they will pay an initial amount of €220m and make additional payments based on Big Time Gaming’s earnings before depreciation, tax, and amortization (EBITDA) between 2022 and 2024. Big Time Gaming recorded a revenue of €33m with an EBITDA of €29m in 2020.

The upfront payment will be €80m in cash while the rest will be paid through newly issued Evolution stocks. They are also committed to making additional payments totaling up to €230m between 2023-2024, with most being paid in cash and some in Evolution shares.

Leading law firm Wiggin LLP has been appointed by Evolution as their main advisor for the deal, with assistance from Deloitte, Addisons, and Gernandt & Danielsson. Big Time Gaming has appointed teacher Stern, Oakvale Capital LLP, and BDO as their advisors.

The Significance of this Acquisition

Big Time Gaming is a leader in the development of online slot games and is well-known for titles like Extra Chilli and Bonanza, along with their popular Megaways feature that has been integrated into over 200 games.

Jens von Bahr, Chairman of Evolution stated, “This acquisition will help us expand our gaming portfolio and establish Evolution as a global leader in the iGaming market. Big Time Gaming’s focus on creating unique player experiences aligns perfectly with our future goals, and we are excited to collaborate on innovative content for players.”

The Future of Evolution

This acquisition comes close on the heels of Evolution’s takeover of renowned iGaming software developer NetEnt in November 2020 at an estimated value of SEK19.60bn/€1.91bn/£1.72bn/$2.30bn.

Evolution had initially made a bid to acquire NetEnt in June 2020, with the aim of becoming a global leader in the iGaming industry. This acquisition of Big Time Gaming further solidifies their position in the market.

In their financial results for the previous year released in February 2021, Evolution reported a remarkable 53.4% increase in revenue YoY to €561.1m. After accounting for all expenses, they recorded an impressive profit of €283.6m, up by 90.1% from the previous year.