The online casino operator, Mr. Green has come out with an official announcement, stating that the purchase agreement for Evoke Gaming has been just finalized. Mr. Green has acquired Evoke Gaming along with its associated gaming properties, like Redbet, for a total of €7million.
As the deal states, Mr. Green is to pay €7million in cash at the actual purchase, then another €1.5million depending on the conditions involved and met. The price is calculated on enterprise value (debt-free basis). Mr. Green is acquiring all shares in Evoke Gaming Ltd from Bonnier Growth Media.
The acquisition will not have any impact on Mr. Green’s EBITDA for 2018. There will be a marginally negative impact on cash flow for 2018. The acquisition will contribute positively to Mr. Green’s EBITDA and cash flow as of 2019. Mr. Green expects to achieve synergies of EUR 2.5-3.5 million per year with full effect in 2019.
In 2016, Evoke Gaming’s revenue amounted to EUR 15.5 million and EBITDA to EUR -4.6 million. For the first nine months of 2017, revenue amounted to EUR 7.4 million and EBITDA to EUR -4.4 million. In 2017, revenue and earnings were negatively impacted because of the migration to a new technology platform and restructuring measures, which are expected to be finalized by the time of the completion of the transaction. Evoke Gaming currently has 82 employees, all of whom work in Malta. Following the relaunch of Redbet and Vinnarum before summer 2017, the sites have demonstrated favorable growth.
Mr. Green’s financial targets of an annual growth rate of 20 percent and an EBITDA margin of 20 percent by 2019 will be unaffected by the acquisition. At 30 September, Mr. Green’s net cash amounted to SEK 567.6 million.
Evoke Gaming has been sold along with the 82 employees in the Malta headquarters and the sites it is running, Redbet, Vinnarum Casino, Bertil, and MamaMia.
Redbet is a sportsbook, poker and casino site, offering its services in mostly Sweden and UK. Mr. Green saw huge potential in Redbet and believes that it will grow together with Mr. Green, making a name for themselves on a global scale. Vinnarum is a casino that operates in the Nordic region and holds a stron position among their returning customers. Bertil and MamaMia are bingo sites that offer their services in Sweden only. They all have good positions and numbers at the moment so they are expected to expand, firstly, in the Nordic market.
So far, it is confirmed from Mr. Green that the Head of Operations of Evoke Gaming, Mr. Fredrik Staël von Holstein will stay on his position despite the purchase and he will also take up a position in Mr. Green’s management team situated in Malta.
The CEO of Mr. Green, Per Norman, could not be left out for a statement regarding the purchase, and he stated: “Evoke Gaming is an ideal fit for our business plan and strategy.
“We are pursuing our strategy of nurturing a small number of strong brands that can work globally. With Redbet and Mr Green, we have two immensely strong brands addressing different segments and we see major potential to expand Redbet into our existing markets.”
Fredrik Staël von Holstein, CEO of Evoke Gaming , also had a chance to add: “Evoke Gaming is on the threshold of a significant turnaround. Mr Green will give us the muscles to continue growing internationally in an effective manner.”
The final steps of the acquisition process are expected to be finalized at the very beginning of 2018 and to be approved by the regulatory commission as well.