Sweden – Evolution Gaming to buy EzugiBy Phil - 21 November 2018
Evolution Gaming is buying Ezugi, a live dealer competitor, for $12m, rising to a ‘possible additional consideration’ of $18m.
The acquisition will increase Evolution’s geographic footprint and accelerate growth in key markets. It is expected to add two to four per cent to 2019 revenues and be slightly accretive to Evolution earnings per share during 2019.
Currently operating from multiple studios worldwide, Ezugi delivers B2B mobile and web live dealer solutions to online operators, land-based casinos and betting shops. Its markets include the US states of New Jersey and Oklahoma, Europe, Latin America and South Africa.
The acquisition will accelerate Evolution’s growth through additional market shares, as well as product development and operational capability in existing Evolution markets such as Romania and the US. The announcement comes just three months after Evolution launched in the US online gambling market with its ninth studio worldwide, in Atlantic City, New Jersey. At November 2018, Evolution and Ezugi are currently the only Live Casino providers operating in the US market.
Evolution’s CEO Martin Carlesund said: “It is a very logical next step for Evolution which will increase our market share in key existing markets, like the US, where Ezugi’s presence and customer base will add to our on-going market expansion as well as add licensees in new markets, such as South Africa.”
Evolution Chairman and founder Jens von Bahr added: “This strategic deal will see Evolution increase its geographic footprint and accelerate growth. It will enable us to fast-track the accessibility to Evolution’s top-ranking software as well as to support continued industry leadership by adding well-established development teams and operational resources.”
Kfir Kugler, CEO and founder of Ezugi, said: “Announcing this agreement gives me great satisfaction. Ezugi has come a long way since it was founded in 2012 and becoming part of Evolution marks the right next step for us. Evolution’s superior offering in areas such as streaming quality and speed, user experience, game choice and all-round operational excellence will help bring the service to the current Ezugi operators to the next level.”