Evolution Gaming Submits Purchase Bid 676NetEnt. The deal is aimed at strengthening the position in the US market. The amount of the proposed contract is 2 billion US dollars. Evolution has made an ambitious announcement of its intention to become "the world leader in the online gaming industry" on this occasion.

The bid has already been approved by NetEnt Chairman Matthias Hedlund. He noted that combining his team's successful online slots with Evolution's Live casino products will give the company more leverage in expanding markets such as North America.

The offered US$8.58 per share represents a 43% markup on NetEnt's closing price on the Stockholm Nasdaq on Tuesday. Compared to the volume weighted average price of one NetEnt share over the past 30 trading days, the premium reaches 72%.

Evolution reported that shareholders who own about 20% of NetEnt shares have already indicated their willingness to make a positive decision. The Board of Directors also unanimously recommended that other shareholders support the proposal. The board members, who collectively control 8.48% of the shares and 23.20% of all votes in NetEnt, have expressed their intention to agree to the deal.

The merger is expected to result in annual cost savings. According to preliminary estimates, this is about 30 million euros compared to the combined costs of NetEnt and Evolution for the first quarter of 2020. Evolution said it will release the proposal document tentatively on August 14, with the deadline for accepting it October 26. The transaction is expected to close on November 2.

"This strategic transaction marks a significant step towards Evolution's long-term plan to become the global leader in the online casino market," said Evolution Chairman Jens von Bahr.

He also added that this merger will create the best provider in the B2B class. The new company will be able to stimulate the transition of the gambling industry to the online world. after all, land-based casinos still make up 90% of the market.

The US market has the potential to be the largest, according to both companies, as each state sets its own laws. The company's total revenue for the first quarter was $187.6 million. An Evolution spokesperson said the potential merger would not materially impact Evolution or NetEnt employees.

On the morning of June 24, Evolution's stock price fell 9.64% to $59.38 per share. The current market capitalization of the company is $11.89 billion.