Evolution Gaming to Acquire NetEnt in a CA$2,85 Billion Deal
Things are heating up in the world of online gambling software providers, with long-time rivals NetEnt and Evolution Gaming coming together in a multibillion-dollar acquisition deal.
In one of the most significant business-to-business online casino services transactions in recent years, Evolution Gaming is bent on acquiring NetEnt through an all-stock deal worth CA$2,85 billion. This will end a long-standing rivalry between the two online casino software providing powerhouses and create a powerful new entity with a sizeable market share across various markets.
The Nature of the Deal
Both companies specialise in business-to-business online casino services and are listed on the Stockholm Stock Exchange. By offering its rival CA$2,85 billion, Evolution plans to add 43% premium to NetEnt share price.
Evolution Gaming opened its doors in 2006 and currently operates via eight gaming studios that churn out bespoke casino platforms for various online casinos, including computerised and live games. Evolution Gaming supplies its products to over 300 iGaming operators globally, and its clients include the likes of Paddy Power, 888, PokerStars, BetFair and GVC Holdings.
Combined Growth Trajectory
NetEnt is best known for its wide range of premium slots games, with the game “Narcos” winning the accolade of one of the best slots for 2019. On the other hand, Evolution Gaming provides live casino services for Royal Panda casino, which has been voted as one of the best live online casinos in 2019. Together, the two companies are well-positioned to become the global market leader for the online gambling industry software development.
According to NetEnt chairman, Mathias Hedlund, the merged company will be well-suited to grab a significant market share, due to NetEnt’s favourable position in online slots and Evolution’s notable live casino knowhow.
In one of his recent interviews, Evolution Gaming CEO, Martin Carlesund, said that the shutdown of inhouse casinos as a result of the coronavirus pandemic might generate a lingering impact on the industry. He noted that the online evolution of gambling has commenced and predicts that as much as 50% to 70% of casino revenue will be coming from online operations in the not too distant future.
Benefits of the Merger
While its always exciting to observe largescale mergers within the online casino industry, the real winners of this deal will be the players themselves. With the new entity expected to generate more premium and entertaining products, we expect a significant enhancement of the online gambling repertoire in the months to come.