Evolution acquires Big Time Gaming

Evolution acquired last year NetEnt for around SEK 20 billion and now they have once again entered into an agreement to buy a popular slots developer on the market. This time it is Big time Gaming that is bought out, at a cost of 450 million euros. This corresponds to approximately SEK 4.6 billion.

The reason for the acquisition

Evolution Gaming aims to become the world's leading provider of casino games and by acquiring other game developers, they automatically strengthen their position in the market. Big time Gaming is a leader in slots and they have developed well-known titles such as Bonanza and Extra Chilli. In addition, they have developed the groundbreaking Megaways feature, which today is available in over 200 games from several providers.

Evolution's chairman of the board, Jens von Bahr, expresses that Big time Gaming will fit well into evolution's corporate culture and their mindset. That's thanks to their innovative approach and focus on creating unique experiences for players. Big time Gaming CEO Nik Robinson says the same, that they and Evolution are a perfect match thanks to its innovative way of working. They promise a bright and entertaining future to their players.

In addition, Big Time Gaming has had good numbers in the last year. Their revenue for 2020 amounted to 33 million Euros, where their EBITDA was 29 million euros. Most likely, they will raise evolution's earnings per share in 2021.

Cost and payment

The total cost of EUR 450 million is not to be paid directly. The initial payment from Evolution Gaming shall consist of EUR 220 million, of which EUR 80 million shall be paid in cash and the remainder with newly issued shares. In addition, Evolution will then pay a maximum of 230 million euros divided twice in the years 2023 and 2024. Of these, 70% is to be paid with cash and the remaining 30% with newly issued shares.

The size of the latter two payments will be calculated based on Big time gaming'S EBIDTA for 2022/2023 and 2023/2024. The purchase itself is currently awaiting approval by the relevant authorities. The calculation is that the purchase is expected to go through in the second quarter of 2021.

Who is Big time Gaming?

Big time Gaming is an Australian game developer that has been on the market since 2011. They became popular with their slot machine Bonanza which introduced Megaways to the market. Megaways means that a slot machine has up to 117,649 ways to win. It is a revolutionary feature that many other game developers have also been licensed to use.

In addition to Bonanza, they have also developed games such as Extra Chilli and Who Wants to be a Millionaire Megaways. Their games are available at a variety of casinos in New Zealand.

Evolution Gaming, on the other hand, is a supplier of games to live casinos, which is also New Zealand. They are now trying to gain a stronger position in the gaming world by acquiring companies that develop slots. It's a smart move because slots and live casino are the two biggest markets in casino gaming today.

We look forward to seeing what the development will look like and we believe that the collaboration between Big time Gaming and Evolution Gaming will contribute to more unique games on the market.