Evolution Gaming about to absorb NetEnt
Just a couple of days ago the news jumped. The live casino giant Evolution Gaming would be on the verge of absorbing the Swedish company NetEnt. If the merger turns out, we would be facing one of the most important software firms in the igaming industry. What does the agreement mean for the sector and for competition? Here is our analysis.
Evolution Gaming has reportedly made an important offer for the acquisition of NetEnt shares. This would be forming one of the most powerful companies in the igaming universe. ©Pejvak Samadani/Unsplash
Known in the igaming world for being the company specializing in live casino games, the Evolution Gaming firm would have made a very generous offer for the actions of the Swedish NetEnt. If it turns out to be a success, we would be facing the formation of one of the most powerful casino software companies on the market.
According to information published by the reuters Agency on June 24, Evolution Gaming's offer would mean a 43% increase per share , exceeding the amount of the operation the 2 billion dollars. In addition, if the acquisition is completed, it would mean that Evolution Gaming would become the owner of 90% of NetEnt's shares.
The details of the acquisition were disclosed from a detailed press release that Evolution Gaming made public through its website. In addition to all the details of the agreement, the firm specializing in live casino games echoed the strong presence of both companies in the United States .
The United States has become one of the most appetizing markets for software developers, given the expansion of online operators in that country; an expansion that has accelerated with the COVID-19 crisis that has left the land-based casino business hit hard .
Since 2018 Evolution Gaming has a studio in Atlantic City , which well-known operators such as 888 use for their online services, in addition to resorts such as the Hard Rock Hotel & Casino, among others, which have begun to launch their own live online pages.
In the press release, Jens von Bahr, president of Evolution Gaming, emphasized the advantages of the operation and highlighted the importance of the growing American market.
“This strategic agreement is a very important step in Evolution's long-term strategy to become the global market leader in the online casino industry. The combination of Evolution's strong live casino offering with NetEnt's leading position in online slots will result in a world-class portfolio of online games that will allow us to serve a growing customer base. In addition, NetEnt's strong position in the USA, combined with Evolution's studies in that country and the strategy of being the first in the regulated market, puts us in a favorable position to take advantage of the ongoing regulation in North America.” – Jens von Bahr , President, Evolution Gaming, in press release
The NetEnt board of Directors would have recommended to its shareholders to accept the offer from Evolution Gaming.
Evolution Gaming and NetEnt in New Zealand
Despite the recent difficulties in the regulated Swedish market , NetEnt has not stopped reporting profits. Both companies would have generated more than 500 million euros last year. In the Asian market, Evolution Gaming's business would have tripled in the first quarter of 2020.
Although in the British market the company is a little weak, in continental Europe profits doubled with the increased interest in live games during the confinement forced by the coronavirus pandemic. Evolution Gaming would have reported revenues of about 115 million euros in the first three months of the current year.
What is the situation in our country? Evolution Gaming has always been characterized by its innovative solutions for the live casino . However, the restrictions and peculiarities of our market have not facilitated the expansion of this igaming giant in New Zealand .
The studio it has in Murcia is one of the smallest of the company. Although it has abandoned its old location in the Gran Casino Murcia - Rincón de Pepe and he has built a studio to the latest in the recently opened spectacular casino Odysseus , which also belongs to the Orenes group.
From this location Evolution Gaming has started to broadcast its Live Lightning Roulette , one of its latest news that many operators such as Betsson, Luckia, Pastón or Suertia have not wanted to miss.
For its part, NetEnt continues to be one of the providers of slot software favorite among Spanish casino customers , with a wide presence among regulated operators.
