Evolution Gaming Purchases Ezugi in Landmark Deal
Live dealer casino software king Evolution Gaming has now taken its first steps into the world of consolidation. The developer has revealed that it is getting ready to acquire one of its biggest rivals, Ezugi, in a takeover deal.
Late last week, the Stockholm-listed company announced to the world that it had inked an all-cash deal to acquire Curacao-licensed Ezugi for a consideration of $12 million upfront. The agreement also reportedly contained a possible maximum top-up payment clause of $6 million in addition to the aforementioned sum.
Agreement to be Finalized by 2019
The acquisition deal is expected to be complete and finalized by early in 2019, as long as it passes the standard closing conditions applicable to these kinds of agreements. Evolution Gaming has noted that the purchase is set to boost its revenues by 2-4% next year, and would also reportedly be ‘slightly accretive’ to its 2019 earnings.
The global supplier of live dealer casino gaming solutions has hailed the deal as a prime way to expand its international footprint, especially since Ezugi operates no less than nine live gaming studios in regulated jurisdictions across the globe. Its current countries of operation include South Africa, Europe, Latin America, and the US state of New Jersey as well.
Ezugi first launched its NJ gambling studio two years ago through an exclusive partnership with Atlantic City’s Golden Nugget Casino – the local market’s leading iGaming operator. Evolution then established its own studio in New Jersey early this year, and now, the two firms are the only licensed live casino game suppliers in the entirety of America.
Authentic Deals with German Casino
CEO of Evolution Martin Carlesund has hailed the purchase as a ‘logical next step’ for his firm. The deal, he says, will have the benefit of boosting his company’s market share in existing markets, and will also add licenses in new jurisdictions such as South Africa. In October this year, the company revealed that its Q3 revenues had risen by 41% year on year to reach €64.3 million, while profits grew 27% to hit €21.2 million.
Kfir Kugler, the CEO of Ezugi, also added that the deal has brought him great satisfaction as he knows that Evolution’s superior offerings in sectors like streaming speed and quality, game selection, user experience and ‘all-round excellence’ would take his firm’s licensees ‘to the next level’. Kugler’s firm, which was founded back in 2012, currently boasts 20 mobile and online games to more than 100 B2B land-based and digital operators.
In related live gambling news, Authentic Gaming of Malta also recently announced that it has teamed up with François Blanc Spielbank, the operator of Bad Homburg Casino in Germany, to live-stream Roulette from its physical floors to online customers. CEO Jonas Delin has commented that the deal will give his company bragging rights as the first – and only – operator to stream live table games from the West European nation.