Evolution is set to acquire Livespins, including its entire share capital, as part of its ‘Product Leap’ strategy. The deal also includes an earn-out payment dependent on Livespins’ performance by 2026. Livespins will enhance Evolution’s online gaming portfolio with a new social category, allowing operators to offer customers the opportunity to bet with their favorite streamers, influencers, or brand ambassadors. Livespins will continue as a distinct brand within the Evolution group and will operate alongside other brands such as Evolution, NetEnt, Red Tiger, Ezugi, Big Time Gaming, No Limit City, and DigiWheel.
The acquisition is expected to be completed in the second quarter, subject to certain closing conditions. Evolution’s CEO, Martin Carlesund, highlights that Livespins is a unique proposition that has demonstrated strong engagement metrics and player adoption. He believes it will be a valuable addition to the Evolution portfolio. Chris Scicluna, Livespins’ CEO, expresses excitement about joining the Evolution Group, viewing it as a significant milestone for their start-up business and a reflection of their team’s dedication and the innovative potential of their product.
The acquisition follows Evolution’s recently published 2023 results, revealing notable growth in both its live and random number generator (RNG) categories. Net profit increased by 27.0% to €1.07bn, and revenue rose by 23.5% year-on-year. Revenue from live casino games experienced the most significant growth, climbing by 28.1% to €1.52bn, largely driven by increased commission income from new and existing customers. RNG revenue also saw a modest increase of 2.6% to €275.3m.
However, Regulus Partners criticized Evolution’s RNG strategic performance, describing it as “embarrassing” and claiming that the group continues to struggle with executing its RNG strategy effectively, particularly in relation to its acquisition of NetEnt. Additionally, Evolution currently faces a class action lawsuit where it is accused of deceiving investors about its growth trajectory and compliance practices. The lawsuit represents entities that purchased Evolution shares between February 14, 2019, and October 25, 2023, seeking damages for alleged untrue or misleading statements made by the company during this period.
