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

The online gaming giant Evolution is set to acquire the renowned Megaways slot developer Big Time Gaming in a deal worth €450m/£389m/$534.5m. The transaction, which will be completed by the end of the second quarter, includes a combination of cash and company shares.

Online casino games are created and licensed by Evolution for operators worldwide. The upfront payment of €220m will be followed by earn-out payments from BGT’s earnings between 2022 and 2024, with a reported EBITDA of €29m for revenue of €33m in 2020.

The initial payment of €80m will be made in cash, while the remaining balance will be paid out in newly launched Evolution stocks. Additionally, an earn-out payment of up to €230m will be made between 2023 and 2024, with a majority being paid in cash and the rest in Evolution shares.

The Malta-based iGaming operator has enlisted Wiggin LLP as their lead advisor for this transaction, along with assistance from Deloitte, Addisons, Gernandt & Danielsson. On the other hand, BGT has appointed teacher Stern, Oakvale Capital LLP, and BDO as their advisors.

A Strategic Move

Known for popular titles like Extra Chilli and Bonanza, along with the fan-favorite Megaways mechanics, Big Time Gaming is a leader in online slot development.

“With the addition of Big Time Gaming, we aim to enhance our gaming portfolio and solidify Evolution’s position as a global leader in the iGaming industry. BGT’s focus on creating unique player experiences aligns perfectly with our future goals and we are excited to deliver top-notch content to our players,” stated Jens von Bahr, Chairman of Evolution.

“Both Big Time Gaming and Evolution share a passion for innovation, making this collaboration a perfect match. We are committed to providing exceptional gaming experiences for our players,” added Nik Robinson, CEO of BGT.

The Future Looks Bright

This acquisition comes shortly after Evolution’s takeover of renowned iGaming software developer NetEnt in November 2020 for an estimated value of SEK19.60bn/€1.91bn/£1.72bn/$2.30bn.

The initial bid was made by Evolution in June 2020 as part of their plan to become a global leader in the iGaming market. The acquisition of Big Time Gaming further strengthens their position.

In February 2021, Evolution reported a significant increase in revenue by 53.4% YoY to €561.1m, resulting in profits of €283.6m after all expenses were accounted for – an increase of 90.1% since 2019.