A King is Dead, Long Live the King: iGaming Brand NetEnt Morphs into a Powerhouse Evolution Holding

Published June 25, 2020 by Lee R

A King is Dead, Long Live the King: iGaming Brand NetEnt Morphs into a Powerhouse Evolution Holding

Evolution's acquisition of NetEnt is all about the future—not more than a year away.

NetEnt has been sold!

The Deal

One of iGaming's largest suppliers officially accepted a £1.6 billion offer from Evolution Gaming.

The Vote

The deal was made official by 45% acceptance among all NetEnt voting rights, plus an additional 23% of NetEnt's voting block formally confirming intent to vote in favor of acceptance.

The Enhanced Stock Offer

The individual stock offering of Sweden-based Evolution Gaming AB Group was 79.93 crowns per share--representing an eye-catching premium of 43per cent over NetEnt's closing price on Tuesday, the day of the sale. The stock offering value topped out at 19.6 billion Swedish crowns (US$2.12 billion),

The deal is expected to be completed by the 2nd November 2020.

Overpaid?

Prognosticators see the surprising change of hands an offer too good to refuse—calling the 43% premium Evolution offered on NetEnt shares a clear overvaluation.

Harnessing the Future

At any rate, Evolution has what it wanted—full control of one of iGaming's most sustainable brands and all its future growth-rendered most captivating because of the powerhouse potential of the combined reach of both companies into the rapidly growing US market.

News of the Deal

M and A news of the deal first surfaced with the announcement that the NetEnt Board was recommending to shareholders acceptance of a purchase offer from Evolution.

Prompt Confirmation

With a window starting August 17 and expiring circa October 26, 2020, acceptance was promptly confirmed.

Remaining Formalities

Completion of the deal remains subject to standard conditions of regulatory clearance for Evolution to become owner of 90 percent shares—to launch a compulsory buy-out procedure of remaining shares in accordance with the Swedish Companies Act.

Savings Benefits

The merging of the companies will yield costs savings of an estimated €30m, based on the combined 2020 Q1 cost figures for each company.

New Synergies Benefits

Added returns in the deal will come in the form of new revenue synergies which are expected to have a positive effect on Evolution’s earnings per share by 2021.

Outlook

So, even though Evolution appears to have overpaid per share for NetEnt, the Evolution share values will rise as a result. So concludes one of iGaming's most prized reigns, giving birth to a global powerhouse the likes of which will be unseen.

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