Evolution looks to be adding another significant member of the igaming establishment, as it enters an agreement to purchase Big Time Gaming for a combined consideration of up to €450 million, payable in cash and shares.
This follows Evolution’s NetEnt acquisition which was completed on December 1, 2020, with the gaming powerhouse claiming that the transfer was made to further improve its status as “the leading provider of digital casino games in the world.”
Driven by innovation
Nik Robinso BTG CEO said: “Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players.”
Evolution would pay €220 million in cash up front as part of the deal. In addition, for the years 2022/23 and 2023/24, Evolution will pay earn-out fees depending on BTG’s EBITDA. The earn-out payments will total up to €230 million and will be made in 2023 and 2024, respectively.
The upfront payment would consist of €80 million in cash and the rest of newly issued Evolution shares. The cash portion of the up-front payment will be made, and the share portion will be distributed after the deal is completed.
The value of the Evolution shares sold as part of the up-front consideration would be equal to the volume weighted average price of the Evolution share on Nasdaq Stockholm from March 23 to April 7, 2021.
70 percent of the earn-out would be paid in cash, with the remaining 30 percent of newly issued Evolution bonds. The deal is expected to be completed during the second quarter of 2021, subject to regulatory approvals.
Strengthening of strategic position
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.
“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.”