Evolution Gaming Willing to Acquire NetEnt for €1.86bn

evolution-gaming-swoops-in-to-take-control-of-rival-netentEvolution Gaming, the Stockholm-listed supplier of gaming content for the iGaming industry has made a bid to acquire their rival NetEnt in an all share transaction.

The former made an offer to the Stockholm-based brand’s shareholders giving them 0.1306 shares in its company for each NetEnt share held, valuing each at SEK79.93, a 43 per cent premium on the stock’s closing price on Tuesday, June 23.

According to the information, this values NetEnt at SEK19.6 billion which comes down to €1.86bn.

Part of Long-Term Vision

Representatives from Evolution say that the acquisition is an important long-term part of their vision of becoming a market leader in the global online gaming industry.

“This strategic acquisition is an important part of Evolution’s long-term vision to become a market leader in the global online gaming industry.”

“The combination of Evolution’s strong offering in live casino and NetEnt’s leading position in online slots will result in a portfolio of world-class online games that will enable us to serve a growing customer base. In addition, the combination of NetEnt’s established position in North America and Evolution’s existing studios in the US and our so-called first to regulated market strategy will put us in an advantageous position to capitalize on the ongoing regulation in North America,” said Jens von Bahr, chairman of Evolution.

The amount previously mentioned is final and will not be increased, and the acceptance deadline is set to October 26, 2020.

Officials from NetEnt say that the company has improved its tech and product development capabilities and has achieved a strong position in the United States. They say that the acquisition creates unique opportunities to form a leading B2B supplier in online casinos.

Mathias Hedlund, chairman of NetEnt, commented: “In recent years, NetEnt has improved its tech and product development capabilities and thereby its growth potential while at the same time achieving a strong position in the states of the US that have opened up for online casinos.”

“Through this transaction, unique opportunities are created to form a leading B2B supplier in online casinos and take full advantage of the market developments with continued digitalisation and strong growth, especially in North America.”

“With Evolution’s position in live casino and NetEnt’s position in online slots, the merged company will be well positioned to capture significant market shares. This transaction will start a new chapter in the development of more entertaining online casinos for the benefit of players, operators, staff and shareholders,” added Mathias Hedlund.

According to both companies, the proposed transaction is not expected to introduce any significant changes for the employees as both companies add to the group’s combined success.

Source: “Statement by the board of directors of NetEnt in relation to the public offer from Evolution Gaming”. NetEnt. June 24, 2020.