- Romanian gambling firm acquired
- Combined business will be fourth largest operator
- Earnings enhancing from 2025
Online betting and gaming company Evoke (EVOK), formerly known as 888 Holdings, has announced the acquisition of Romanian firm NGS (Net Gaming Solutions), the seventh biggest betting and gaming operator in the country.
Evoke will inject its own Romanian business plus €10 million in cash in exchange for a 51% share of the enlarged business which will become the fourth biggest operator with a combined market share of circa 7%.
The company said the combined business will operate a multi-brand strategy, leveraging a ‘local hero brand alongside a highly complementary, world-renowned casino brand’.
Shareholders welcomed the deal, pushing Evoke’s stock up 1.9p or 2.8% to 70.98p in early trading.
Following a profit warning in July, the shares are down 22% for the year compared with a 7.6% gain for the FTSE All-Share index.
WHAT DID THE COMPANY SAY?
CEO Per Widerstrom commented: ‘This acquisition is consistent with our strategy to build sustainable market-leading profitable positions in the most attractive markets. It is also consistent with our M&A strategy to focus on low-capital, high-impact combinations that accelerate the delivery of our strategy.
‘We have enjoyed significant success in Romania, which is an exciting growth market. This combination will cement a leading position for Evoke, and I am looking forward to working with the whole team at Winner to deliver ongoing profitable growth and market share gains, as we deliver exceptional products through two incredibly strong and complementary brands.’
The deal is expected to close in the third quarter of 2024 and be earnings enhancing from 2025 and beyond.
Evoke said the transaction does not alter current financial guidance for 2024 which calls for second half revenue growth of 5% to 9% and an improved EBITDA (earnings before interest, tax, depreciation, and amortisation) margin of 21%.
