Evolution enters agreement to acquire online slot developer Nolimit City for up to €340m

Live dealer giant Evolution, through its wholly owned subsidiary Evolution Malta Holding Limited, on Wednesday entered into an agreement to acquire Nolimit City for an upfront consideration of €200 million on a cash and debt-free basis.

With earn-outs of up to €140 million, the entire deal can amount to Evolution forking over €340 million in exchange for the developer and producer of online slots, Nolimit City.

Considered to be a disruptive force in the online slot development market, Nolimit City has created its own niche in the market through games with sometimes provocative themes and a humorous touch. Some award-winning games include Mental, San Quentin and East Coast/West Coast.

The acquisition is in line with Evolution’s strategy of being the world’s number one provider of online casino games, supplying its customers with the best gaming content. With the Nolimit City brand, Evolution extends its portfolio of world-leading slot brands that already includes NetEnt, Red Tiger, and Big Time Gaming.

According to a company statement by Nolimit City, Evolution is financing the deal from cash at hand.

Inn addition, Evolution may pay earn-out payments in cash, based on Nolimit City’s EBITDA for the years 2022, 2023 and 2024, respectively. The earn-out payments will amount to a maximum of €140 million, and become payable in 2023, 2024 and 2025, respectively.

Speaking of the deal, chairman of Evolution Jens von Bahr commented:

“With the addition of Nolimit City to the Evolution family, we extend our portfolio of truly innovative and cutting edge games from the top brands and game makers in the industry. We have followed Jonas, Emil, and their team for a few years and have been impressed as they have established a completely new style of slot games. I am proud that yet another of the very best minds in our industry has chosen to join the Evolution network.”

On his part, Nolimit City co-founder Jonas Tegman said:

“I cannot think of a better match between two companies than between Nolimit City and Evolution, we are fully aligned in terms of people, product, technology, and how to get the job done. The slot vertical is under massive change, and we can’t wait to take on the challenge of global expansion together with Evolution, helping out with navigating towards the best slot product offering in the market.”

Nolimit City revenue is expected to amount to €30 million with an EBITDA of €23 million for the calendar year 2022. The transaction will contribute positively to 2022 EPS for the Evolution Group.