Evolution Strikes a Deal to Acquire Big Time Gaming for €450m

Live Casino giant Evolution is set to acquire the renowned Megaways slot developer Big Time Gaming, in a deal worth €450m/£389m/$534.5m. This strategic acquisition, payable in cash and company shares, is expected to be finalized by the end of the second quarter.

As a leading provider of online casino games worldwide, Evolution has agreed to an initial payment of €220m and will pay off the remaining amount through earn-out payments based on BGT’s earnings before depreciation, tax, and amortization (EBITDA) between 2022 and 2024. BGT reported a revenue of €33m with an EBITDA of €29m in 2020.

The upfront payment will consist of €80m in cash while the rest will be paid out in newly issued Evolution stocks. Additionally, an earn-out payment of up to €230m will be made in installments over the next two years, with a majority being paid in cash and the remaining portion in Evolution shares.

Deal Advisors and their Role

Striking a Strategic Partnership

With its popular titles like Extra Chilli and Bonanza, and the highly sought-after Megaways mechanics featured in over 200 games, Big Time Gaming is a leader in online slot development. According to Jens von Bahr, Chairman of Evolution, this partnership will further strengthen their gaming portfolio and cement their position as a global leader in the iGaming market. Nik Robinson, CEO of BGT, also expressed excitement for creating unique player experiences with Evolution.

This acquisition comes just months after Evolution acquired iGaming software developer NetEnt for an estimated value of SEK19.60bn/€1.91bn/£1.72bn/$2.30bn in November 2020.

The financial results for the previous year revealed an impressive revenue increase of 53.4% YoY to €561.1m for Evolution, with profits reaching €283.6m after all expenses were accounted for.