On June 24th, 2020, Swedish Evolution Gaming Group AB announced its intention to acquire NetEnt AB for 19.6 billion SEK (£1.7 billion) in stock. NetEnt’s board of directors unanimously recommended that shareholders accept the offer, which has since been completed, marking a major milestone in the iGaming industry.
The deal, valued at 19.6 billion SEK (£1.7 billion), offered a price of 79.93 SEK (£7) per share—43% above NetEnt’s closing price on June 23rd, 2020. Following the announcement, NetEnt’s share price surged from 56 SEK (£4.8) to 77 SEK (£6.6).
This acquisition was not only sizeable in monetary terms but also a testament to Evolution Gaming’s rapid growth since its establishment in 2006, a decade after NetEnt. The deal demonstrated Evolution’s ambition to solidify its dominance in the online gaming market.
The deal was finalised in December 2020, with Evolution acquiring approximately 96.8% of NetEnt’s shares. Following the acquisition, Evolution began a significant reorganisation of NetEnt’s operations. One major change was the closure of NetEnt’s live casino division, a cost-saving measure that streamlined operations and generated approximately £25 million in annual savings.
Since the acquisition, Evolution has seen remarkable growth. By integrating NetEnt and Red Tiger Gaming into its portfolio, Evolution reported a 105% increase in revenue in Q1 2021 compared to the same period the previous year.
Beyond this merger, Evolution has continued its expansion, acquiring Big Time Gaming in 2021 for €450 million. This brought the Megaways™ mechanic into its portfolio, further solidifying its position as a leader in both live and RNG casino games.
Live casino gaming is the fastest-growing segment of online casinos, mainly due to technological developments and improvements. Between 2015 and 2019, live casinos saw an annual growth rate of 38%. By offering better and improved solutions to more and more providers, Evolution Gaming has been keeping up with this growth.
Read: Live Casino Games Are Taking Over UK Online Gambling
But while the full focus on live casino games has made Evolution Gaming experts within the field, it has simultaneously left them out of one of the biggest parts of online casino gaming: slots. With the acquisition of NetEnt (and consequently Red Tiger Gaming), Evolution Gaming will also be able to be part of this market space.
Chairman of Evolution, Jens von Bahr, commented. “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.”
Today, Evolution Gaming stands as a powerhouse in the iGaming industry, offering a diverse portfolio of live and RNG games that cater to all types of players.
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