Evolution Gaming, a leader in the live casino industry, recently announced a public offer to the shareholders of NetEnt, an iGaming company that has a solid foundation in the development of online slots. The offer is set to secure the Evolution Gaming's position in becoming the world’s leading online gaming provider. Microgaming and Playtech should better watch out.
The Chairmen of both NetEnt and Evolution have publicly endorsed this deal highlighting the unique possibilities it presents as well as the many advantages that will be enjoyed by companies, shareholders, and players. Previous purchases have already proven to be of value for the company, therefore they are continuing their expansion.
Benefits of This Offer
The deal is structured to have a massive effect on the expansion of Evolution Gaming and at the same time provide NetEnt with the opportunity to partake in what would be the biggest step in the iGaming industry to date. Both companies have a strong foothold in their respective areas and a merger would create a world-class B2B experience for all parties involved. Evolution Gaming is in a unique position to digitalize the global gaming industry and with NetEnt’s superior technology, it is no longer a pipedream.
As it stands, the US is expected to be Evolution’s biggest market once states finalize their regulations. The company already has a studio in New Jersey, but has secured deals with the Pennsylvania and Michigan states. Merging with NetEnt will result in the entire process being a fast-tracker with cross-selling from each company’s customer base. From a revenue perspective, the merger will be mutually beneficial to both companies resulting in 30 million Euros worth of annual cost savings.
The Particulars of the Offer
The offer was made directly to the shareholders of NetEnt. Shareholders who accept the offer will be receiving 0, 1306 Evolution shares in exchange for one NetEnt share. Furthermore, shareholders who are unwilling to accept the offer will be offered buy-outs for their shares and will be de-listed. Evolution Gaming has also expressed that they are unwilling to increase the premium on the shares. NetEnt is strongly urging its shareholders to accept this offer as even 0,1306 worth of Evolution shares will hold great monetary value when Evolution Gaming Group goes live with the two new studios they have secured as well as the future deals Evolution will make with states as gaming rules are relaxed.
The offer does hold a few conditions and can only be completed if more than 90% of shareholders agree. Majority of the shareholders have indicated that they are positive about the offer and will vote accordingly. Evolution plans to publish an official offer document around the 14th of August 2020 and the acceptance period will be between the 17th of August to the 26th of October 2020.
The Executives’ Opinions
Chairman of Evolution, Jens Von Bahr, has expressed that the plan was a great strategic move that marks Evolution’s long-term journey to becoming a global market leader in the online gaming industry. Evolution’s expertise in live casino products coupled with NetEnt’s forefront position in online slots will secure a portfolio of first-class games that will allow Evolution to service an even wider customer base. In addition to this, NetEnt’s established US presence in conjunction with Evolution’s existing studio and business strategy will provide the company the opportunity to capitalize on the market growth in North America where regulations are taking form.
Chairman of NetEnt, Mathias Hedlund, began his statement by commenting on the technological advancements and product development that NetEnt has made. Due to this, the company has managed to secure a foothold in the US and improve their growth prospects. He further expressed his opinion on the matter of the deal which he says will create unique possibilities to take advantage of the growing market in North America. He believes that the supreme experience that will be created by the deal will create a company that will be well-positioned to take significant market shares. He shared his elation at the prospect of beginning a new chapter of game development that will be more entertaining than before while keeping the best interests of players, employees, operators, and shareholders at the forefront.
It appears that this deal would be beneficial to all parties involved. The online casino industry is certainly reaching its booming stage in the US and Evolution Gaming, in conjunction with NetEnt, is fully intending to strike while the iron is red hot.