In a statement on the 24th of June, NetEnt has announced that it has received an acquisition offer by Evolution Gaming, which its board of directors unanimously recommends accepting.
Evolution Gaming Set to Acquire NetEnt
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In a couple of months, therefore, we may see two currently leading software developers become one. Judging by the first-class content they have both been developing so far, this acquisition would have a revolutionary impact on the Live Casino scene, and online gambling as a whole.
Evolution Gaming to Purchase NetEnt
NetEnt has published a statement by its board of directors, informing the public that Evolution Gaming has given them an offer they cannot refuse. The recommendations of the board of directors were to accept the offer from the leading Live Dealers games developer.
Compliant by the EU Market Abuse Regulation, NetEnt was obliged to publicly share the news. The acceptance period is scheduled to start around the 17th of August and end around the 26th of October. Further extensions, should they be necessary, are to be expected. Should the offer be accepted, Evolution Gaming would be the owner of 90% of the total number of NetEnt’s shares, and it has reserved the right to waive one or a few of the conditions, including to complete the offer at a lower level of acceptance. The offer values each of NetEnt’s shares to SEK 79.93, which altogether means SEK 19.6 billion, based on the closing prices on the 23rd of June, 2020.
In the evaluation of the offer, the board of directors, naturally, has taken several factors into account. Some of them include NetEnt’s present financial and strategic position, operational challenges and opportunities, expected future opportunities, risks, and development, prevailing market conditions and valuation methods normally used in evaluating public offers. The board’s view on NetEnt’s value based on the expected cash flow and dividend generation was also included. The board, as part of its process to evaluate the offer, has explored other opportunities in light of the approach by Evolution Gaming, but as the board sees it, combining forces with the Live Dealer software developer is the best current option, a strategically sound and positive move.
Effects on NetEnt and Its Employees
The board’s opinion on the effects of the offer acceptance on NetEnt and its employees, its view on Evolution’s strategic plans for the company, and the impact these could have on employees and the locations where NetEnt runs its businesses were also included in the statement.
According to the statement, Evolution Gaming was confident that together with NetEnt’s senior management and employees they would be able to build a strong group, considering how the Live Casino content developer appreciated their talent and dedication, so they would continue to be integral to NetEnt’s and the combined group’s success. Material impact on any of the employees was not to be expected, including their locations or terms of employment where the companies currently run their businesses. Following the offer acceptance, Evolution would carry out a careful review to evaluate how it could organize and develop the combined group in the best possible way.
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