The best-known company in the Live Dealer iGaming segment, Evolution Gaming, has just announced a ground-breaking acquisition of rival studio Ezugi. By securing Ezugi, EG has effectively left itself without any competitors.
Evolution Gaming Acquires the Competition
Evolution Gaming is intent on not letting anyone else dominate the Live Dealer segment. To this end, the company has just announced that it’s paying $18 million to acquire its only rival, Ezugi, founded back in 2012. The acquisition of Ezugi will allow Evolution Gaming to advance in New Jersey and Oklahoma where the now-bought company has been running operations.
Negotiations took a while, as the initially proposed amount of $12 million didn’t inspire any reaction from Ezugi, with Evolution Gaming agreeing to top off the sum with additional $6 million. The offer has worked and now the studio is on track to acquire the company in Q1, 2019.
Evolution Gaming are also putting great store by this new partnership, as they are hoping to expand geographically, but also boost growth in new and essential markets from where to pivot their expansion into the United States and North America. The acquisition move will additionally top up Evolution Gaming’s financial results by at least 4% per share.
Martin Carlesund, Evolution CEO, has been pleased with the latest acquisition, as it will allow the company to consolidate its presence in the United States, opening up resources to expand in places, such as South Africa, which the company considers to be of particular importance.
It is a very logical next step for Evolution which will increase our market share in key existing markets, like the US, 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 Gaming CEO Martin Carlesund
Ezugi’s facilities are state-of-the-art, available in six languages and nine dedicated studios, and catering to 100 iGaming operators. Evolution’s decision to acquire Ezugi doesn’t come from a desire to top the field and eliminate competition, however.
Ezugi offers a well-developed network with a variety of customers and the studio’s own streaming quality and speed match Evolution’s own. The choice of games and all-around availability is another deciding factor in seeking closer ties with the company.
Evolution Gaming’s own financial results have been quite refreshing, with Q2, 2018 marking a continued growth of the developers’ activities.
Despite the acquisition, Evolution Gaming is now aware that places, such as New Jersey and Atlantic City are full of competition, with a number of rival companies (although not direct competitors) entering the market. 888, PokerStars, and others are among the operators to arrive at the market.
Expansion for Evolution Gaming will have to be done gradually and while scouting out for new opportunities well beyond the United States. The 41% jump in revenue in Q2 is indicator that Evolution know how to identify profitable business opportunities and quickly monetize on those.
Profit alone as of the end of September, was 40% up, presently at $144 million, and Evolution’s climb to financial records continues unbothered by any external factors.