Gaming Software Company Evolution Acquires NoLimit City
The news that the live casino giant Evolution Gaming expanded its portfolio by acquiring NoLimitCity is out! The deal is worth over $357.4 million, but Evolution will pay it out in two phases. We’ll take a closer look at the deal’s details, how this benefits Evolution, where this acquisition leaves NoLimit City, and what the future of gaming software holds.
Revealing the Acquiring Details
Evolution is set to boost up its iGaming portfolio with NoLimit City for an initial price of $210.4 million. If baseline goals are reached, the possible sale might result in a higher price or an additional$147 million for NoLimit City. Ultimately, the deal’s overall value is expected to amount to $357.4 million.
The additional amount that Evolution is willing to pay is dependent on the overall performance of the software company in the next three years. The deal is for the sum to be paid out in cash using the available assets.
Two of the most famous games that Evolution will now own are San Quentin and East Coast/West Coast.
Evolution is undoubtedly one of the most prominent names when it comes to online gaming software. The company was founded in 2006 with headquarters in Sweden and is a global leader in live dealer gaming.
At the end of 2020, Evolution acquired NetEnt for a deal of an astonishing $2.1 billion. At the time, NetEnt already had Red Tiger under its belt, which is another big name in the iGaming sector.
The next merger deal that Evolution went after was Big Time Gaming, and they closed the deal for $534 million. Big Time Gaming’s Megaways and Megapays reels revolutionized the market in addition to introducing some of the most played online reel machines in the past couple of years.
But the company’s future plans don’t just revolve around the slot creations. In fact, with the mergers of Ezugi and DigiWheel, Evolution, the industry’s leading supplier and creator of live dealer games, has been aggressively seeking expansions of rivals in the live gaming market as well. This acquisition allows Evolution to go one step further in its plans – becoming the iGaming market’s number one online casino games provider.
And as of today, Evolution is doing great – both on quality delivered and the obtained finances. For the first quarter of 2022, Evolution reported operational sales of $346 million, which is a rise of 38.6% compared to the company’s profit for the first quarter of 2021.
What Does the Acquisition Mean for NoLimit City?
For starters, NoLimit’s co-founder, Jonas Tegman, stated that the two companies’ strategies are entirely compatible.
“Nolimit City and Evolution are synchronized in regards to the target audience, content, innovation, and the process of getting the job done. I couldn’t imagine a greater combination among two firms,” said Tegman.
“The slot industry is undergoing significant transformation, so we are eager to respond to the challenges of worldwide expansion with Evolution and assist in creating the most incredible online reel machines,” continued Tegman.
It is more than clear that NoLimit City is on the right path. In fact, the acquisition is a clear indicator of the quality of service and products they bring to the market. And with the new deal, we can only expect improvements across all sectors.
The company anticipates that the combination with Evolution would enable it to meet its fiscal year 2022 goals of $32 million in revenue and $24 million in EBITDA.
About NoLimit City
The answer to why a giant like Evolution would acquire NoLimit City lies in the company’s value. In their 8 years of existence, they’ve created and enhanced many game mechanics, including the xFeatures – xNudge and xWays.
Their slots are built on a fast and flexible platform which is easily integrable into Evolution’s plans.
Additionally, NoLimit City already works with the world’s best online casino operators, including ComeOn! (where they’ve already acquired a license for the market in Ontario), LeoVegas, Unibet, and others.
The Future of Gaming Software
Evolution may be one of the biggest names in the iGaming sector, and the newest acquisition only cements its position. Evolution’s software providers’ umbrella is broad and colorful – they now produce the best online slots and live dealer gems.
And let’s not forget that Evolution already launched its first Virtual Reality game – Gonzo’s Treasure Hunt.
Therefore, it’s safe to say that the future of gaming software is bright and that we can see innovative technologies and maybe a few more merger deals.