World’s leading live dealer casino platform provider Evolution Gaming announced that it’s going to buy the company that owns its studio building in Riga, Latvia. The provider revealed that the acquisition will cost Evolution Gaming €12.4 million and that it’s supposed to provide “both strategic and financial benefits.”
The decision to acquire the company and become an owner of the building where the provider’s operational activities take place was made by the Board of Directors and it won’t affect the objective to distribute at least 50% of the net profit for the year.
Evolution Gaming has been using the space in the building since 2011 and it rents more than half of the total office space. Additionally, the company has a strong need to further expand its studio floor in the years to come thanks to the high demand of its product. Since the landlord hadn’t been able to guarantee such further expansions, Evolution Gaming had to look for alternatives like the one supported by the Board of Directors.
CEO of Evolution Gaming, Jens von Bahr, stated that the acquisition provided “clear strategic advantages” for the company since they managed to “strengthen the control” over their future. He also pointed out that the ability to expand Evolution Gaming studio floor would be much easier and claimed that the company would also have a “slight positive financial impact” on the long run.
The whole process is expected to be completed in January, 2016, and involves a payment made of €3.1 million in cash and €9.3 million in loans.