Evolution Gaming offers to buy NetEnt for $2 billion. Sweden’s Evolution Gaming Group AB said on Wednesday it offered to buy NetEnt AB for 19.6 billion Swedish crowns ($2.12 billion) in stock. This acquisition serves to broaden their slate of casino games and increase earnings through cost savings.
NetEnt shareholders will receive 0.1306 Evolution shares for each share they hold. Several large NetEnt shareholders have undertaken to accept the offer, holding about 45 per cent of the company.
Evolution said it would not increase the bid, with an acceptance period beginning on August 17, 2020 and expiring on or around October 26, 2020.
Completion is subject to customary conditions. This includes obtaining regulatory clearances and approving the bid to a degree that Evolution Gaming is the owner of shares comprising more than 90 per cent of the total number of outstanding shares.
Should Evolution acquire more than 90 per cent of the shares in NetEnt, whether in connection with the bid or otherwise, it intends to implement a mandatory buy-out process for the remaining shares in compliance with the Swedish Companies Act.
Mathias Hedlund, chairman of NetEnt, explained, “With this deal, there are unique possibilities to shape a leading global B2B provider of online casino, taking advantage of the market development with continued digitalisation and strong growth, especially in North America”.
“Evolution’s position within live casino combined with NetEnt’s position within online slots will create a company well positioned to take significant market shares. 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” he added.
Jens von Bahr, chairman of Evolution, explained “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”.
“Furthermore, NetEnt’s established US positioning combined with Evolution’s existing US studios and first-to-regulated-market strategy will put us in a favourable position to capitalise on the on-going regulation in North America” he added.