Evolution to acquire the leading online slot machine developer Big Time Gaming

Evolution evolving group based out in Sweden is all set to acquire Big Time Gaming for $535 million, to be paid cash and evolution shares.

Deal with open multiple avenues of growth

The company said that the conglomeration with Big Time Gaming would help them strengthen their strategic position and emerge as a world-class leader of digital casinos in the world. Since Big Time Gaming extensively focuses on innovation and creates a great user experience, the company said it would be a great addition for our culture and mindset.

“Both Big Time Gaming and Evolution group are driven by innovation, and hence they will perfectly co-exist with each to create a unique experience for players. We hope for a bright and entertaining future for all the players,” said Nik Robinson, CEO, Big Time Gaming.

Big Time Gaming is a name reckoned with slotxo titles. The online slots provider Big Time Gaming includes titles like Bonanza and Extra Chilli. Megaways Technology which is recognized as a gambling mechanism of the year 2020 and used for more than 200 games with distinct providers, is also invented by BTG.

The revenue of Big Time Gaming for the financial year 2020 was $39.3 million, along with an EBITDA of $34.5 million. The revenue is said to increase two-fold after the deal signed with the Evolution group.

Financing of the deal

According to the sources, it is expected that the Evolution group will make an upfront payment of $262 million to Big Time Gaming. Additionally, it will also make earn-out payments pertaining to the EBIDTA of Big Time Gaming at the end of the financial year from 2022-24, respectively. The earn-out payments to be made are estimated for a sum total of $274 million to be paid in the FY 2023-2024.

The payment for $95 million will be made upfront in cash and will make the remaining payment through shares of Evolution group.

The value of Evolution shares will be derived based on the average price of these shares on the Nasdaq Stockholm from 23rd March to 7th April.

The earn-out payments to be made will be made 70% in cash and the remaining 30% in shares. Again the prices of shares to be issued as a part of earn-out payments will be based on the average price of these shares on Nasdaq Stockholm at the time when the shares will be issued.

Condition and time duration of the deal

The trade-off with both the companies will be based on the completion of regulatory bodies and is estimated during Q2 2021.

Wiggin will be the lead advisor from Evolution group along with additional support from Addison, Deloitte, EY, and Gernandt& Danielsson for this transaction. Similarly, legal advisors from Big Time Gaming will be Oakvale Capital LLP, Teacher Stern, and BDO to complete this deal.