Evolution Gaming in Multimillion Big Time Gaming Deal
In a recent move, Evolution Gaming announced a multimillion-dollar acquisition of Big Time Gaming, a prominent developer of slot machines.
The Evolution Gaming Group is expanding its horizons after agreeing to an acquisition deal of Big Time Gaming worth up to US$450 million. Big Time Gaming is a leading slot machine developer, famous for titles such as Extra Chill and Bonanza. Megaways, the revolutionary game mechanic developed by Big Time Gaming, is used in over 200 games.
Terms of Transaction
According to Evolution Gaming’s chairman, Jens von Bahr, the acquisition of Big Time Gaming to the portfolio of Evolution Gaming slots will significantly improve its position as a cutting-edge provider of online gambling solutions. Von Bahr noted that both companies share similar innovative mindsets and a desire to generate fresh and creative experiences for gambling enthusiasts.
The slot developer has recorded €33 million of revenue and €29 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) in 2020. The acquisition of Big Time Gaming will positively reflect on the 2021 earnings per share of the gaming provider. Reports suggest that Evolution Gaming is willing to pay as much as €220 million for the arrangement and will pay earnout payments in the future based on the slot designer’s EBITDA.
It was reported that the upfront payment would be €80 million in cash, with the rest paid in newly issued shares. The shares included in the upfront payment are to be valued according to the Nasdaq Stockholm average stock rating for 23 March to 7 April.
The earnout agreement will also be partially paid in cash, with a 70% consideration fee paid in currency and the remaining 30% in newly issued shares. Again, the shares will be valued per the Nasdaq Stockholm rating, and the correspondent price will determine the value at the time of issuance.