Industry News
Industry News

CMA investigation of the planned acquisition of NetEnt by Evolution Gaming

On September 22, the UK Competition and Markets Authority (CMA) investigated Evolution Gaming’s planned acquisition of NetEnt. The authorities were concerned that this transaction would result in a situation of imbalanced competition in the online gaming market.

In June of this year, Evolution Gaming, a world-leading B2B provider of video-streamed Live Dealer gaming, announced the acquisition of NetEnt for US$ 2.2 billion. The company strives to transform itself into a global leader in the online gaming industry through this merger & acquisition project. According to the original plan, all acquisition procedures are projected to be completed by November 2. However, the intervention by CMA has disrupted this timeline. 

Due to the ravaging COVID-19 epidemic, a majority of all physical casinos worldwide are closed, and most major sports competitions have been postponed or canceled. Many gamers are therefore switching to online casino games. As a result, the total revenue of NetEnt in the first and second quarter of 2020 grew by 30.2%, while the total revenue of Evolution Gaming in Q2 rose by 50% (around US$ 150.7 million) over the same period of the previous year.

Gaming product offerings after the merger will encompass live casino and online slot games. Evolution Gaming strives to achieve marketing improvements and revenue growth through cross-sale strategies and by tapping the customer bases of both companies. The goal is to intensify relations with customers and partners and expand the geographical distribution of markets. The joint-stock company is committed to achieving international growth through different types of acquisitions.