Evolution Gaming Strikes Landmark Deal To Acquire NetEnt
The gaming industry was turned upside down in late June. Both based in Sweden, Evolution Gaming tendered an offer to buy all the stock of its rival NetEnt. The stock buyout was at a 43 percent premium to NetEnt’s market price on June 23. This equates to $1.6 billion in Swedish currency.
The NetEnt Board of Directors voted to approve this offer. Under the Takeover rules of Nasdaq Stockholm, the offer is considered to be final and will not be amended.
When Will Evolution Gaming Finish Striking A Landmark Deal To Acquire NetEnt?
As posted on Nasdaq.com, closing could take place as soon as Aug. 17. The expiration date of this deal has been set for Oct. 26.
Terms of the deal still need standard regulatory approval. There will also be a full vote of NetEnt shareholders. Part of the due diligence involved a thorough evaluation of the offer. As a result, the NetEnt board has determined that Evolution Gaming’s offer is in the best interest of all shareholders. Moreover, this should make full approval a formality.
Both companies have already earned their lofty position in the gaming content industry. Evolution has been a true pioneer in the Live Casino segment.
NetEnt’s core strength still lies in its vast portfolio of online slots and other casino games. The combination of the two should set the future course of the iGaming industry.
Another highly attractive feature of deal is the enhanced ability to compete in the emerging US market. Online gaming on a state by state basis is still in a very high growth business stage. Evolution (combined with NetEnt) will have the potential to make this its biggest market over time.
The company is already running Live Casino studios in New Jersey, Pennsylvania, and Michigan will also be coming online with Live Casino capabilities in the near future. NetEnt has established a strong presence in the US with its free online slot games. The acquisition will put Evolution on the fast track to added market share growth. This will be fueled by more and more states offering casino gambling online.
Other benefits of this deal include overall cost savings due to improved economies of scale. In a recent post on nasdaq.com also covering this deal, Evolution Chairman Jens von Bahr released the following statement:
“This strategic deal marks a significant step towards Evolution’s long-term vision of becoming the global market leader in the online casino industry. The combination of Evolution’s strong offering in Live Casino with NetEnt’s leading position in online slots will result in a world class portfolio of online games that will enable us to serve a growing customer base.”
Also added in the post was a statement by Mathias Hedland as Chairman of NetEnt. His comments included:
“Recently, NetEnt has vastly improved its tech and product development capabilities and thereby its growth prospects. And at the same time reaching a strong position within the US states that have opened up for online casino. Through this transaction, a new chapter in the development of more entertaining online casino begins. In the best interest of players, operators, employees, and shareholders.”
• Source: Evolution Gaming offers to buy NetEnt in $2 bln online casino deal From Nasdaq.com On June 24, 2020.
