NetEnt’s Board Of Directors Recommends Shareholders To Accept Evolution’s Offer

In accordance with the Nasdaq Stockholm Takeover Rules, the Board of Directors of NetEnt has issued a statement with regard to the public offer made by Evolution Gaming (EG). Thinking of the NetEnt – Evolution combination as positive and strategically sound, the board has recommended the former’s shareholders to accept the offer.

On 24 June 2020, EG announced an offer of 0.1306 shares for each share in NetEnt, valuing each share to SEK 79.93 and all shares in NetEnt to approximately SEK 19.6 billion based on closing prices valid on the previous day. The leading provider of live casino solutions has also stated that it will not increase the offer, meaning the price is final under the takeover rules.

As expected…

…the acceptance period for this offer will begin on or around 17 August 2020 and expire on or around 26 October 2020, although dates are subject to change due to various conditions including regulatory clearances. To evaluate the offer, the NetEnt’s board of directors has already taken certain steps, engaging Lazard as a financial advisor and Vinge as a legal advisor.

Special attention was paid to the fact, the consideration offered is in Evolution Gaming shares but after investigating other opportunities, the board concluded that the combination with Evo is “the best current option.“

In its press release, Evolution Gaming stated it is “confident that it will be able to build a strong group together with NetEnt’s senior management and employees“. It also highlighted that the company „recognizes the value of NetEnt’s senior management and other employees and appreciates that their talent and dedication have been, and will continue to be, integral to NetEnt’s and the combined group’s success.“

When it comes to the eventual material impact on the workforce, Evolution said it doesn’t currently foresee any for on “Evolution’s or NetEnt’s respective employees, including their terms of employment or the locations where the companies currently operate.“

NetEnt, in turn, strongly believes…

…joining with EG is going to create the world’s leading B2B provider of online casino products, both in live dealer games and pokies. Undoubtedly, NetEnt will be able to benefit from Evolution’s strong market position in the Live segment while the combination will have “significant capabilities to leverage its strong position within the US states that have opened up for online casino.“

In addition to that, the increased entity will provide extended client and product diversification to “better address a changing market environment.“ Needless to say, given a robust technology basis of both companies, business customers and end-users will enjoy an even broader range of innovative options and engaging games.

Source: “Statement by the board of directors of NetEnt in relation to the public offer from Evolution Gaming“. NetEnt. June 24, 2020.