Exclusive to Evolution Gaming: The NetEnt combination will help the gaming sector "push the digitalization."
It was stated on Wednesday that Evolution Gaming has made an offer of SEK 19.6 billion ($2.1 billion) to acquire NetEnt, the company that owns Red Tiger. The planned offer, the acceptance of which has not yet taken place, placed a value of SEK 79.93 on each share of the Swedish supplier. Gambling Insider had a conversation with a representative from Evolution Gaming in order to have a better understanding of the primary motivations driving the company's interest in NetEnt and to determine how the acquisition fits into the company's long-term goals.
The first piece of information that was divulged by the spokesman was that the discussions about the intended offer started this year, and that they were "launched some time following the Q1 report."
When asked about the primary motivations for the impending purchase, Evolution Gaming claimed that the purpose of the merger was to accelerate the process of digitalization in the gaming industry.
"The merged firm will become a prominent online gaming provider with a strong foundation for worldwide development and expansion," stated a representative for the business.
"The combination of NetEnt's strong position in slots and Evolution's leading position in live casino will produce a best-in-class B2B provider with the potential to push the digitalization of the global gaming industry,"
Although the spokesperson for Evolution Gaming was cautious to attach too much weight to this aspect, it is safe to say that NetEnt's acquisition of slot provider Red Tiger Gaming in September 2019 had some bearing on the company's interest in pursuing a partnership with Evolution Gaming.
He stated that Red Tiger was a subsidiary of NetEnt. So, it is only logical that we have taken into consideration the entirety of the organization in the offer.
The revenue that Evolution Gaming brought in for the whole year of 2019 was €365.8 million, which is equivalent to $410.2 million. This is a year-on-year increase of 49% over the previous year's total.
When asked how the transaction fits into the company's long-term ambitions for expansion, Evolution Gaming responded by stating that the purchase will signal a "major step" towards the company's objective of being the "market leader in the online casino sector."
After getting backing from the majority of the firm's shareholders, Evolution Gaming anticipates that NetEnt will agree to their proposal, which a spokeswoman for the company referred to as "a very appealing offer."
