NetEnt AB’s board has confirmed that it has accepted an offer of SEK 19.6bn (€1.8bn) from Evolution Gaming AB for it’s acquisition.
The offer, priced at SEK 79.93 (€7) per share, will see Evolution move to acquire 90 percent of corporate shareholding from NetEnt.
The intended offer by Evolution represents a premium of 43 percent on the closing price of SEK 56.10 by NetEnt on the Nasdaq Stockholm Exchange as of June 23.
The combination of the business is expected to achieve combined cost savings of € 30 million per year, in which Evolution stated that by 2021 NetEnt ‘s assets will have a positive effect on its earnings per share.
Evolution Gaming Chairman Jens von Bahr commented on the transaction: “This strategic deal marks a significant step towards Evolution’s long-term vision of becoming the global market leader in the online casino industry.
“The combination of Evolution’s strong offering in live casino with NetEnt’s leading position in online slots will result in a world-class portfolio of online games that will enable us to serve a growing customer base.”
In launching a ‘landmark’ deal to accelerate Evolution’s long-term ambition of ‘becoming the world leader in the online gaming industry,’ the combined product portfolio will include live casino and online slots games, and generate revenue upsides through cross-selling and improved distribution via the customer base of both companies, closer customer partnerships and additional geographic spread.
The combination would also allow the newly merged organisations to take advantage of a strong position in the US states that have opened their markets to ignore services.
NetEnt chairman Mathias Hedlund explained: “Recently, NetEnt has vastly improved its tech and product development capabilities and thereby its growth prospects and at the same time reaching a strong position within the US states that have opened up for online casino.
“With this deal, there are unique possibilities to shape a leading global B2B provider of online casino, taking advantage of the market development with continued digitalisation and strong growth, especially in North America.
“Evolution’s position within live casino combined with NetEnt’s position within online slots will create a company well-positioned to take significant market shares. Through this transaction, a new chapter in the development of more entertaining online casino begins, in the best interest of players, operators, employees and shareholders.”