Break news: Evolution Gaming bids to acquire Netent
Live gaming giant Evolution Gaming has offered approximately SEK 19.6bn (around $2.1bn) to takeover Swedish rival NetEnt.
The value of each share of Netent, the slots and online casino supplier giant, is valued at SEK 79.93. This offer represents a premium of 43% over NetEnt’s closing price on Tuesday, June 23 and around 72% above NetEnt’s average price per share of the last 30 trading days.
Evolution Gaming reports that NetEnt’s board ‘unanimously recommends’ to shareholders to accept the Evolution Gaming offer.
NetEnt shareholders, who represent a further 8.48% of all shares and 23.2 of all votes in NetEnt, have expressed their intention to accept the SEK 19.6 bn offer.
This merge with Netent allows Evolution Gaming to boost their market entry in the US online gaming market, adding value to his existing Live Casino studios in North America with the Netent premium slots quality portfolio.
Mathias Hedlund, chairman of NetEnt, clearly stated: “Recently, NetEnt has vastly improved its tech and product development capabilities and thereby its growth prospects and at the same time reaching a strong position within the US states that have opened up for online-casino. 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.”
On the other side Jens von Bahr, chairman of Evolution, stated: “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.”
The proposed transaction won’t make significant changes for the management and the employees of both companies, as Evolution stated that “we will continue to be of great importance to NetEnt and the combined group’s success”
The timeframe for the offer begins on 17th August lasting until 26th October 2020, while the estimated settlement date if the deal is accepted is 2 November 2020.