Evolution On Fast Track To Acquire NetEnt

netent and evolution

Lillie Mcguire
Posted on November 20, 2020 at 3:11am

Huge news making headlines this week is that live casino provider Evolution has successfully secured the approval of the U.K.’s Competition and Markets Authority (CMA) in respect of its intended acquisition of iGaming giant NetEnt. The approval by the CMA marks the final outstanding approval required in order for the massive acquisition deal to be completed by the two industry titans.

Issued on November 16, the CMA took nearly two months completing its investigation of the deal so as to ensure no negative impact on local markets as a result of the two online casino companies coming together under a unified corporate ownership. The authority’s main order of business is that of safeguarding free trade and commercial flow in the country.

The formal regulatory investigation of the $2.25 billion deal was announced in September. The protracted timeframe for completion necessitated an extension of the initial shareholder approvals deadline initially set for October 30, to November 20. Now that the approval has been sealed and secured the voting process can proceed unhindered and without any further delays, Evolution has confirmed.

Milestone For Evolution

Should Evolution secure the finalisation of the acquisition, the live casino giant will have progressed yet another step closer to its goal of growing to the point of primary B2B iGaming supplier across the regulated world.

Once complete, the buy-out will see Evolution own a minimum stake of 90% ownership in the online casino software developer/supplier. To this end, the offer is equal to a per-share acquisition premium of 43% - an offer reportedly unanimously supported and provisionally accepted by NetEnt’s board of directors.

Deal Is On Scale

The coming together of the two online casino brands certainly represents a massive new dynamic about to enter the industry – and a dynamic arguably only equalled by that of the Flutter Entertainment/TSG deal finalised earlier this year.

Evolution will have spent sufficient time carrying out due diligence investigations and would ultimately have been driven to a significant extent by NetEnt’s acquisition of online games-maker Red Tiger.

This is after all the same deal that saw NetEnt post record revenue figures for the initial quarter following the take-over, as well as year-on-year improvements for every period that has followed. So powerful has the impact of the acquisition of the studio been on the brand’s overall performance and outlook, that a smashing $11.1 million in revenue posted for the post-acquisition quarter – out of a total of ±$60 million – was in fact generated by Red Tiger.

Success Multiplied

Both online casino companies performed well above expectations during the third quarter of 2020.

Evolution reported a stellar 48% year-on-year improvement – with a total of $165.8 million reported for Q3. Furthermore, they reported expansion progress in leaps and bounds, with the live casino specialist having recently launched brand-new studios across several U.S. states, as well as in Lithuania.

NetEnt, in turn, reported an equally impressive Q3 in terms of revenue generated.  The supplier reported an 18% year-on-year quarterly improvement – with revenue reported for Q3 reaching $60.3 million.

Next Step: Settlement

Now that Evolution has secured the final outstanding approval, the next step will be to commence with the settlement procedure. The initial date earmarked for this is December 1st. They will however remain at liberty to extend the settlement date, as well as postpone the anticipated finalisation of the acquisition timeline.

Evolution already as early in the process as September obtained approval from the Malta Competition and Consumer Affairs Authority.

Aside from the unanimous vote of support cast by NetEnt’s board of directors, at least 20% of the supplier’s shareholders have reportedly indicated their intended vote of approval in support of the finalisation of the deal.


More News

888 Breaks the Mould With Live Casino Games

Lillie Mcguire
Posted on July 23, 2021 at 11:07am
888 Breaks the Mould With Live Casino Games

The live casino games at 888 may well be one of the brand’s best features. The software is provided by Evolution, which means that Canadian play

The Importance of Good Mobile Casino Apps

Lillie Mcguire
Posted on July 22, 2021 at 12:07pm
The Importance of Good Mobile Casino Apps

Mobile technology advancements have been a huge reason for the boom in online gambling. The proliferation of mobile casinos making it easy to play whe

AGCO to Observe Ontario Casino Transactions

Lillie Mcguire
Posted on July 19, 2021 at 12:07pm
AGCO to Observe Ontario Casino Transactions

As Ontario’s Roadmap to Reopen plan goes into effect, the province’s Alcohol and Gaming Commission has set up a specially organised inter-

Pragmatic Play Adds More Live Casino Games

Lillie Mcguire
Posted on July 12, 2021 at 1:07am
Pragmatic Play Adds More Live Casino Games

Pragmatic Play, one of the industry’s leading iGaming content providers, has reportedly expanded its Azure titles significantly. This comes shor

Pragmatic Play Provides Betsson With Live Casino Games

Lillie Mcguire
Posted on July 02, 2021 at 12:07pm
Pragmatic Play Provides Betsson With Live Casino Games

Pragmatic Play has debuted its entire live casino portfolio in partnership with Betsson Group. This is being hailed as yet another major milestone for

Aspire Global Revolutionise Online Casino Marketing

Lillie Mcguire
Posted on June 28, 2021 at 2:06am
Aspire Global Revolutionise Online Casino Marketing

It seems that Aspire Global is doing whatever it can to revolutionise the ways in which online casino operators are choosing to market their brands ac

How To Choose The Best Live Casinos

Lillie Mcguire
Posted on June 25, 2021 at 12:06pm
How To Choose The Best Live Casinos

Online gambling’s popularity has soared in recent months. The global online gambling market is now predicted to be worth $67 billion by the year

Playtech Launch Fixed Odds Live Casino Games

Lillie Mcguire
Posted on June 25, 2021 at 12:06pm
Playtech Launch Fixed Odds Live Casino Games

Playtech, one of the industry’s leading iGaming developers, has just launched a brand new and exciting set of live casino games with fixed odds.

New Slingo Casino Games Online Deal

Lillie Mcguire
Posted on June 25, 2021 at 1:06am
New Slingo Casino Games Online Deal

Gaming Realms has officially rolled out a casino games online licensing agreement with International Game Technology, also known as IGT. The Gaming Re

OLG Inks AGS Casino Games Online Deal

Lillie Mcguire
Posted on June 25, 2021 at 1:06am
OLG Inks AGS Casino Games Online Deal

The Ontario Gaming and Lottery Corporation (OLG) has recently partnered up with The American Gaming Systems (AGS). An agreement between the two brands