Mr Green Ltd has announced the finalization of an agreement to acquire Evoke Gaming and its associated gaming properties such as Bertil, MamaMia and Vinnarum. According to Mr Green, this transaction will help it achieve important synergies. The firm also intends to expand Redbet casino, one of Evoke’s gaming sites, into its existing future markets.
Under the terms of the transaction, the initial purchase price is €7 million. A further €1.5 million is payable if certain conditions are met. In the transaction, where the price is calculated on debt-free basis, Mr Green acquires all shares in Evoke Gaming Ltd from Bonnier Growth Media.
Mr Green Ltd is a renowned online gaming company that offers online casino, live casino and Sportsbook in 13 countries. The firm was named IGA Operator of the year in 2013, 2014, and 2015. It was also named Mobile Operator of the Year of in 2016. It is a fully owned subsidiary of the Swedish Mr Green & Co AB which is listed on Nasdaq Stockholm market.
The acquisition of Evoke transaction
According to top online casino reviews and news, the acquisition of Evoke Gaming will not have any impact on Mr Green’s EBITDA for 2018. However, there will be a marginally negative impact on the company’s cash flow for 2018. In 2019, the acquisition will positively contribute to Mr Green’s cash flow and EBITDA. Synergies of between €2.5 and 3.5 million per year are expected in 2019 by the company.
The revenue of Evoke Gaming in 2016 was €15.5 million and EBITDA was -€4.6 million. The revenue was €7.4 million and EBITDA -€4.4 million for the first nine months of 2017. According to Evoke, earnings and revenue in 2017 were negatively affected by the migration to a new technology platform. There were also restructuring measures yet to be finalized and which also affected the company’s performance. Two Evoke’s gaming sites which were launched earlier in 2017 recorded encouraging growth. Currently, Evoke has 82 employees all of whom are based in Malta.
The future prospects of Mr Green after the acquisition
The annual financial target for Mr Green is 20 percent. The company expects to achieve an EBITDA margin of 20 percent by 2019. These targets will remain unaffected by the acquisition. As at 30th September 2017, Mr Green’s net cash amounted to SEK 567.6 million
Mr Green has confirmed that Fredrik Stael von Holstein will continue being the head of Evoke Gaming’s operations. He will become a member of Mr Green’s management team in Malta after the acquisition.
Per Norman, CEO of Mr Green & Co, in a statement said, “Evoke Gaming is an ideal fit for business plan and strategy”.
He further added that the Mr Green together with one of Evoke’s strong gaming brands will address different market segments. The company’s strategy is to also pursue a small number of strong brands that can work globally.
On his part, Fredrik Stael von Holstein said that Evoke Gaming is on the threshold of a significant turnaround. He said that Mr Green will give Evoke the muscles to continue growing internationally in an effective way.
This transaction is subject to the customary regulatory approval. Under the EU Market Abuse Regulation, Mr Green & Co is bound to make all the information regarding the acquisition public which it did on December 18th, 2017. The transaction is expected to be finalized in the first quarter of 2018.