Live casino solutions provider Evolution Gaming has agreed a deal to acquire live dealer gaming provider Ezugi for an initial US$12m.
Possibly rising by a further $6m, the acquisition increases Evolution’s geographic footprint and accelerates growth in key markets. It is expected to add between two and four per cent to 2019 revenues and be slightly accretive to Evolution earnings per share during next year.
Operating from multiple studios worldwide, Ezugi delivers B2B mobile and web live dealer solutions to online operators, land-based casinos and betting shops. Its markets include the US states of New Jersey and Oklahoma, Europe, Latin America and South Africa.
The acquisition will accelerate Evolution’s growth through additional market shares, as well as product development and operational capability in existing Evolution markets such as Romania and the US. The announcement comes three months after Evolution launched in the US online gambling market with its ninth studio worldwide, in Atlantic City, New Jersey.
As of November 2018, Evolution and Ezugi are currently the only live casino providers operating in the US market.
Evolution’s CEO Martin Carlesund said: “I am pleased about this agreement. It 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.”
Evolution Chairman and founder Jens von Bahr said: "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.”
Completion of the transaction is planned for early 2019 and is subject to certain closing conditions.
