Evolution gaming, the world leader for B2B live casino services has acquired Nolimit City, the gambling software company and slot developer, for €340m. Evolution gaming have made this move in order to expand its reach.
It seems like this move was around the corner since November 2021 when Gambling Insider reported that another major acquisition could be just around the corner for Nolimit City.
Evolution Gaming Expanding Its Reach
Evolution gaming already owns Red Tiger, NetEnt, and Big Time Gaming. Nolimit City, on the other have for the following online slots: San Quentin xWays, East Coast vs West Coast, Tombstone RIP, Mental, and Deadwood – most of these are some of the most popular.
Evolution Chairman, Jens von Bahr, had this to say after the acquisition:
“With the addition of Nolimit City to the Evolution family we extend our portfolio of truly innovative and cutting edge games from the top brands and game makers in the industry. We have followed Jonas, Emil and their team for a few years and have been impressed as they have established a completely new style of slot games. I am proud that yet another of the very best minds in our industry has chosen to join the Evolution network.”
Jonas Tegman, the Nolimit City Co-Founder, also had some kind words for Evolution:
“I cannot think of a better match between two companies than between Nolimit City and Evolution, we are fully aligned in terms of people, product, technology and how to get the job done. The slot vertical is under massive change, and we can’t wait to take on the challenge of global expansion together with Evolution, helping out with navigating towards the best slot product offering in the market.”
Meeting New Objectives
The acquisition of Nolimit City should help Evolution meet its objective of generating revenue of €30m and an EBITDA of €23m for the year 2022.
Evolution have to make an initial payment of €200 million payment to finance this deal. It’s a significant outlay but one that looks a perfect match from the outside looking in. There will be additional payments of around €140 million are based on Nolimit City’s EBITDA for 2022 to 2024. This will be payable over years 2023 to 2025 using the existing reserves.
Evolution are a highly ambitious company and the board come out with a strong statement highlighting their intention for the future. “The acquisition is in line with Evolution’s strategy of being the world’s number one provider of online casino games, supplying its customers with the best gaming content,” the Evolution board revealed.
In the past, the company has made it known that it wants to be as big a brand as Spotify, Google and Facebook. That looks unlikely for the time being but that doesn’t mean that they’ve not been a success so far. The company has gotten so big because of making smart decisions and it looks like that’s likely to continue with this latest acquisition.
The completion of the deal is subject to regulatory approvals and is expected to be completed during the Q3 of 2022.