Live dealer casino technologies supplier Evolution Gaming have gotten in to the consolidation game by acquiring rival Ezugi.
On Thursday, the Stockholm-listed Evolution announced that it had entered into an all-cash agreement to acquire the Curacao-licensed Ezugi for $12m upfront having a possible maximum top-up payment of $6m.
The deal is expected to be complete by early next year, topic towards the usual closing circumstances. Evolution stated the acquisition would boost its 2019 revenues by 2-4% and could be “slightly accretive” to its earnings next year.
Evolution hailed the deal as a method to expand its geographic footprint, given Ezugi operates nine live casino studios across the globe, such as in Europe, Latin America, South Africa and New Jersey.
Ezugi launched its New Jersey online casino two years ago by way of a partnership with Atlantic City’s Golden Nugget casino, the market’s top online casino operator. Evolution opened its New Jersey studio this summer time and also the two companies are presently the only licensed reside casino suppliers within the US of A.
Evolution CEO Martin Carlesund hailed the acquisition as “a extremely logical subsequent step” for his business, growing Evolution’s marketplace share in its current markets and adding licenses in new markets, such as South Africa.
Ezugi CEO Kfir Kugler was equally effusive, saying the deal gave him “great satisfaction” understanding that Evolution’s “superior providing in areas like streaming high quality and speed, user encounter, game option and all-round operation excellence” would take Ezugi’s current licensees ”to the next level.”
Ezugi, which was founded in 2012, currently provides 20 mobile and internet games to over one hundred B2B online and land-based customers. It’s a private business, thus its financial overall performance remains black-box material. In October, Evolution reported its Q3 income up 41% year-on-year to €64.3m and profit increasing 27% to €21.2m.