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Evolution to acquire Livespins for initial €5.0m

| By Robert Fletcher
Evolution Malta Holding, a subsidiary of Evolution, has agreed to acquire games provider Livespins for a total up-front cash consideration of €5.0m (£4.3m/$5.4m).
Evolution Livespins

Under the deal, Evolution will purchase the entire issued share capital in Livespins. The agreement also includes an earn-out payment based on Livespins’ performance by 2026.

Evolution said the acquisition fits into its “Product Leap” strategy, adding that Livespins will strengthen its online gaming portfolio with a new social category. Livespins allows operators to offer customers the chance to bet with their favourite streamers, influencers or brand ambassadors.

Livespins will continue as its own brand within the Evolution group. It will run alongside the Evolution, NetEnt, Red Tiger, Ezugi, Big Time Gaming, No Limit City and DigiWheel brands.

Evolution expects to complete the purchase in the second quarter, subject to certain closing conditions.

Evolution CEO: acquisition a “unique” proposition

“Livespins is a unique proposition that has shown solid engagement metrics and adoption by players and one we believe will be a great addition to the Evolution portfolio,” Evolution CEO Martin Carlesund said. 

“Over the years, we have garnered a reputation for identifying new and interesting technology which is why I’m thrilled that we have reached an agreement with Livespins.”

Livespins CEO Chris Scicluna added: “This is an unprecedented milestone for Livespins. We couldn’t be happier to be joining the Evolution Group. 

“We are still in the start-up phase of our business and to attract the attention of Evolution is incredibly rewarding. It also is a reflection of all the hard work that our team has poured into this concept since we launched and the unwavering belief this product would revolutionise the industry.”

Net profit passes €1bn at Evolution in 2023

The acquisition comes on the back of Evolution publishing its 2023 results last week. These show growth across both its live and random number generator (RNG) divisions, with net profit up 27.0% to €1.07bn as result.

Revenue was 23.5% higher year-on-year. Live casino led the way with revenue up 28.1% to €1.52bn due to increased commission income from both new and existing customers. RNG revenue also climbed 2.6% to €275.3m.

However, Regulus Partners questioned the group’s RNG strategic performance, describing it as “embarrassing”. Regulus believes Evolution is still “failing to execute” its RNG strategy, reserving particular criticism for its acquisition of NetEnt and its work with it since.

Meanwhile, Evolution is also facing a class action lawsuit. This alleges the supplier deceived investors over its growth trajectory and compliance.

The suit represents entities that purchased Evolution shares between 14 February 2019 and 25 October 2023. It alleges Evolution made untrue or misleading statements over growth potential, customer compliance, compliance and the effect of non-compliance on revenue during this timeframe.

As such, the suit is aiming to recover damages from all investors that purchased securities within the class action period.

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