Evolution Gaming Aims to Expand by Purchasing NetEnt
There was excitement in the online casino industry when Evolution Gaming made known its plans to purchase top leading gaming developer, NetEnt. The top live dealer developer announced a 2.12 billion dollars bid on June 24, 2020, for NetEnt.
This purchase will give over 90% of NetEnt's shares to Evolution Gaming. The bidder stated that $2.12 billion was the maximum it would offer. It further gave NetEnt between August 17 to October 26 to take the deal.
The deal puts NetEnt’s value at about $8.50 per share which is the company’s highest in about 3 years. NetEnt’s board of directors has moved swiftly to recommend the deal to shareholders.
The Deal Expectations
If the deal is successful, it is expected that it would lead to combined yearly costs saving which could total €30 million for the companies compared to 2020 first-quarter accounts.
Acceptance of this bid by NetEnt’s shareholders will strengthen Evolution Gaming in the market. It will broaden the number of casino games they offer and also boost their income. It is also expected that their income per share will rise if the deal takes effect.
The Chairman of Evolution Gaming, Jens Von Behr, described the deal as a great step in fulfilling the company’s vision of becoming a global leader in the online casino market. He further predicted that it will make many world-class online casino games available to an increasing customer base.
The deal marks the latest big move for the gaming company which has been operating since 2006. With about 8000 solid workforces spread across Europe and North America, the company has more than 300 operators as their customers.
Why Evolution Gaming is so interested in Netent (and vice versa)
NetEnt, which is popularly known for its creative slot games like Narcos and Street Fighter II, has proved to be successful over the years. This purchase represents the ideal move to suit Evolution Gaming’s vision.
The company’s purchase of Red Tiger Gaming (RTG) less than a year ago, possibly made them more attractive to Evolution Gaming. Netent has also built a strong presence in the US. This will work well with Evolution Gaming studios in North America and will cause a growth in the market there.
NetEnt will also benefit from this deal as it will enjoy Evolution’s strong dominance of the live casino market. A number of leading sites like Casino Top in South Africa use this platform. These offer different regulation in the UK, but it is a much regulated market and it’s a lot better than using random sites in Europe.
The Chairman of NetEnt, Matthias Hedlund, has described it as a landmark deal. He then predicted another chapter of developing more entertaining and exciting online casino games.
For each share owned by Shareholders of NetEnt, the deal will get them 0.1306 of Evolution shares. Many of NetEnt big shareholders who hold around 45% of the company have agreed to take the offer.
About Evolution Gaming & NetEnt
Evolution Gaming started about 14 years ago and presently has 8 gaming studios where it streams live casinos from. They stream several kinds of games with the live dealers speaking the native language of the customers. The studios are available in Spain, Belgium, Romania, Canada, Malta, Georgia, Latvia, and Atlantic City. Clients of Evolution Gaming include Paddy Power, Betfair, Pokerstars, GVC holdings, 888, and many others.
NetEnt which started since 1996 specializes in slot games. The game ‘Narcos’ from the company was named one of the best new slots in the year 2019. The company has released many other big titles loved by casino players around the world.