Interactive
Sweden – Evolution enters €450m agreement to acquire Big Time Gaming
By Lewis - 12 April 2021
Evolution has entered into an agreement to acquire Big Time Gaming for a total consideration of up to €450m, payable in cash and Evolution shares.
Completion of the transaction is conditional upon receipt of regulatory approvals and is expected during Q2 2021.
The total up-front consideration payable by Evolution in the Transaction is €220m. In addition, Evolution will pay earn-out payments, based on Big Time Gaming’s EBITDA for the years 2022/23 and 2023/24, respectively. The earn-out payments will amount to a maximum of €230 million, and become payable in 2023 and 2024, respectively.
The up-front consideration will be payable as to €80 million in cash and the remainder in newly issued Evolution shares. The cash part of the up-front consideration will be paid, and the share part of the up-front consideration will be issued, at completion of the transaction.
The Evolution shares issued as part of the up-front consideration will be valued at a price equivalent to the volume weighted average price of the Evolution share on Nasdaq Stockholm during the period 23 March – 7 April (an expected issue of 1,120,000 shares).
The earn-out consideration will be payable 70 per cent in cash and 30 per cent in newly issued Evolution shares. The Evolution shares to be issued as part of the earn-out consideration will be valued at a price equivalent to the volume weighted average price of the Evolution share on Nasdaq Stockholm at the time the earn-out shares are issued.
“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,” explained Jens von Bahr, Evolution’s Chairman.
“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.”
Big Time Gaming titles include Bonanza and Extra Chilli as well as the game mechanic, Megaways, which is incorporated in over 200 games from multiple providers. Nik Robinson, CEO at Big Time Gaming, said: “Evolution and Big Time Gaming are both driven by innovation, hence the perfect match. A bright and entertaining future awaits for our players.”
Big Time Gaming revenue amounted to €33m with an EBITDA of €29m for the calendar year 2020. The transaction is estimated to contribute positively to 2021 EPS for the Evolution Group.
