Igaming developer and provider Evolution Gaming has finalized the acquisition of slot developer NetEnt by acquiring the outstanding shares in the company, pushing its control in the company to around 97% of the total stock. The purchase comes after an extended grace period that allowed Evolution to defer a payment for the acquisition of remaining shares.
The move comes with the blessing of the UK’s Competition and Markets Authority (CMA), a regulator that oversees mergers between industry companies and the Malta Competition and Consumer Affairs Authority. Both approvals were received in September.
Why Did Evolution Purchase NetEnt’s Full Shares?
The purchase of NetEnt marks an important step forward for Evolution, which has made one of the biggest acquisitions in the igaming industry. Through the acquisition of the Swedish slot maker and igaming developer, Evolution is consolidating its presence in the interactive gaming segment and entering a vertical in which it is underrepresented.
The compulsory purchase of stock was necessitated as per the Swedish Companies Act as part of previous negotiations. As a result, NetEnt has now applied to delist its shares from the Nasdaq Stockholm Exchange as the entity’s intellectual property may now only be traded under Evolution Gaming’s brand, to which NetEnt belongs.
Evolution is planning to focus on “total reorganization and integration” of the NetEnt business so it better aligns with the corporation’s plans for penetrating new markets, consolidating existing offers and developing brand-new products.
To this end, Evolution has shut down the NetEnt Live business with most of the staff working in the department made redundant. Sources have described the move as resulting in hundreds of job cuts and the media coverage has led to some controversy, with anonymous employees stepping up to claim that Evolution did not give them proper notice.
Evolution has responded that any restructuring move undertaken had been in line with previously-stated synergy goals. Meanwhile, NetEnt’s CEO Therese Hillman will continue to work with Evolution in her current position before she steps down following the first quarter of 2021.
Evolution expects its combined operational results to drive strong operational growth for the company. While the NetEnt Live studios had to be shut down, the company remains fully committed to developing its product portfolio. Similarly, layoffs have been reported across multiple NetEnt offices around the world.
Evolution is not planning on any immediate acquisitions after NetEnt, as the company will focus on developing and delivering on its pipeline through 2021. Clearing the deal marks a significant milestone in the industry as acquisitions between businesses have continued.
Similarly significant development is the acquisition of Eldorado and Caesars, which now operates under the Caesars Entertainment banner.
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