Table of Contents
Bragg Gaming is moving forward with its US gaming ambitions after agreeing to buy Las Vegas-based Wild Streak Gaming for $30 million.
The acquisition of the content production firm, which has a library of 39 slot titles that are supported across online and land-based applications, comes on the heels of a $30 million cash and stock deal acquisition of Spin Games last month.
Bragg claims that upon completion of the two, it will have successfully implemented a strategy to acquire “the essential resources and technology assets required to become a tier one vertically integrated B2B gaming business operating in the US and Canadian market.”
Terms of the deal
The sellers of Wild Streak received $10 million in cash and will acquire $20 million in common shares of Bragg over the next three years, subject to acceleration in the case of a change of ownership, under the terms of the deal, which closed immediately with the signing of the acquisition agreement.
Bragg Gaming’s CEO, Richard Carter said: “In an industry where premium content is king, Doug and his team have built up an enviable track record of developing leading premium casino slot content for both the land-based and online casino industry.
“We look forward to integrating this know-how into Bragg’s overall offering and significantly expanding the company’s higher margin proprietary in-house casino slot content capabilities.
“We expect this transaction to be materially enhancing to both revenue and EBITDA in the first full year of ownership, as well as strategically compelling given Wild Steak brings a wealth of US market casino games insights into the group, including valuable game designs, advanced game mechanics and features that are specifically tailored for and proven in the US market.
“We welcome Doug and the whole Wild Streak team onboard, and we look forward to leveraging Doug’s expertise to lead our US and global content creation strategy.”
Doug Fallon, the founder and CEO of Wild Streak, will join Bragg as managing director of group content, where he will be responsible for the company’s content strategy in the United States.
He’ll also work closely with the European development team to make it easier for US operators to cross-sell and repackage Bragg’s unique content.
In FY2020, Wild Streak generated $1.05 million in revenue and $233,000 in EBITDA, and in the first quarter of 2021, it generated $487,000 in sales and $241,000 in EBITDA.
Strategy and key components to accelerate growth
“Richard and the Bragg Gaming executive team have put in place the strategy and key components to accelerate their growth and market share in the igaming market, and Wild Streak is excited to be a cornerstone for their growth strategy,” commented Fallon.
“We are highly impressed with the Oryx Gaming technology stack’s robust foundation and their roadmap for additional capabilities in development. We are looking forward to working with the Oryx team to create unique player experiences as we embed their technology into our game designs.
“As the trends indicate, much of the historical content designed for Europe does not resonate with the traditional American player, and we believe our background is an ideal fit for the Bragg Gaming Group as it focuses on this emerging market.”