According to the official press release…
The initial consideration of $12 million in the all-cash deal could possibly see the addition of a maximum consideration of $6 million. The transaction’s planned completion is for early in the new year and is subject to certain closing conditions.
Increase global footprint:
Courtesy of the acquisition, the Riga-headquartered company’s geographic footprint will increase and growth in key markets will accelerate. The purchase is reportedly expected to add 2 to 4 percent to next year’s revenues and add value to the firm’s earnings per share during the new year.
Founded in 2012, Ezugi currently operates nine studios with 20 games, providing online operators, betting shops and land-based casinos with B2B mobile and web live dealer solutions. The firm’s markets include South Africa, Latin America and Europe, as well as the U.S. states of Oklahoma and New Jersey.
In addition to accelerating Evolution’s growth via added market shares, operational capability and product development in the company’s existing markets such as the U.S. and Romania will also benefit. The announcement comes on the heels Evolution’s August unveiling of the opening of its first U.S. live casino studio. Its new purpose-built production studio is located in Atlantic City, New Jersey.
As of November 2018, Ezugi and Evolution are the only Live Casino providers who are operating in the U.S. market, according to the press release.
“very logical next step“
Commenting on the recent announcement, Chief Executive Officer for Evolution Gaming, Martin Carlesund said he was “pleased” about the agreement and the acquisition is a “very logical next step for Evolution which will increase our market share in key existing markets, like the U.S, where Ezugi’s presence and customer base will add to our on-going market expansion as well as add licensees in new markets, such as South Africa.”
Also commenting was the company’s Chairman and founder, Jens von Bahr, who added…
“This strategic deal will see Evolution increase its geographic footprint and accelerate growth. It will enable us to fast-track the accessibility to Evolution’s top-ranking software as well as to support continued industry leadership by adding well-established development teams and operational resources.”
For its part, Ezugi founder and Chief Executive Officer, Kfir Kugler said that announcing the agreement gives him “great satisfaction.”
Kugler went on to say…Ezugi has come a long way since it was founded in 2012 and becoming part of Evolution marks the right next step for us. Evolution’s superior offering in areas such as streaming quality and speed, user experience, game choice and all-round operational excellence will help bring the service to the current Ezugi operators to the next level.”
Planned utilization of NJ studio:
The unveiling in August by Evolution was preceded by a series of announcements from Resorts Casino Hotel, 888casino, Hard Rock Hotel & Casino Atlantic City, Ocean Resort Casino Atlantic City and the Rush Street Interactive-operated PlaySugarHouse.com declaring they will utilize the studio to launch live casino services for the Garden State’s players.
Last month, the Stockholm-listed firm inked a supply agreement to provide its products to players in New Jersey via the domain at PokerStarsCasinoNJ.com. And this month, the company announced that it has partnered with Belgian operator Ardent Group to launch a three-hour television program branded around the locally-licensed domain at Circus.be.