Evolution Buys Nolimit City for €340m

Press Release: 22nd June 2022

Evolution AB (publ) ’s wholly owned subsidiary, Evolution Malta Holding Limited (“Evolution”), has agreed to acquire the entire issued share capital of Nolimit City Holding Ltd (“Nolimit City”) for an upfront consideration of EUR 200 million (the “Transaction”). With earn-outs of up to EUR 140 million, the total consideration can amount to up to EUR 340 million, payable in cash.

Transaction highlights and strategic rationale

Nolimit City is a truly innovative, world-leading producer of online slot games that has created its niche in the market through games with sometimes provocative themes and humorous touches.

Nolimit City games offer players a unique, graphically rich playing experience. Nolimit City titles include award-winning games such as Mental, San Quentin and East Coast/West Coast.

The acquisition aligns 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.

Jens von Bahr, chairman, Evolution “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 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.”

Jonas Tegman, Co-Founder, Nolimit City “I cannot think of a better match between two companies then 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’s revenue is expected to amount to EUR 30 million with an EBITDA of EUR 23 million for the calendar year 2022.

The Transaction will contribute positively to the 2022 EPS for the Evolution Group.

Consideration and financing

The total up-front consideration payable by Evolution in the Transaction is EUR 200 million on a cash and debt-free basis.

The consideration is financed from cash at hand.

In 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 EUR 140 million and become payable in 2023, 2024 and 2025, respectively.

Conditions and time plan for the acquisition

Completion of the Transaction is conditional upon receipt of regulatory approvals and is expected during Q3 2022.

Press Release Ends