Evoke acquires Romanian gambling operator in €10 million deal

Lea Hogg August 23, 2024

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Evoke acquires Romanian gambling operator in €10 million deal

Evoke (EVOK), formerly 888 Holdings, has announced the acquisition of Net Gaming Solutions (NGS), a leading Romanian gambling operator, for €10 million. This strategic move positions the newly combined entity as the fourth-largest operator in Romania, with a market share of approximately 7 percent.

Under the terms of the deal, Evoke will integrate its existing Romanian operations and invest €10 million in cash to secure a 51 percent stake in the expanded business. The company plans to implement a multi-brand strategy, combining a popular local brand with a globally recognized casino brand.

Evoke expands to become fourth-largest operator in Romania

The acquisition aligns with Evoke’s strategy of establishing sustainable, market-leading positions in high-growth markets through low-capital, high-impact mergers and acquisitions. CEO Per Widerstrom expressed enthusiasm about the deal, noting its potential to drive profitable growth and increase market share in Romania.

Evoke’s shareholders responded positively to the news, with the stock rising 2.8 percent to 70.98p in early trading. Despite a recent profit warning, the acquisition is expected to enhance earnings starting in 2025. The company has maintained its financial guidance for 2024, projecting second-half revenue growth of 5 percent to 9 percent and an improved EBITDA margin of 21 percent.

The transaction is expected to close in the third quarter of 2024.

Evoke reported Q2 2024 revenues of approximately ￡431 million, remaining stable both sequentially and year-on-year. The UK online sector saw a 3 percent revenue increase, driven by a 6 percent growth in gaming due to product and promotional improvements. The company, which rebranded from 888 Holdings to Evoke in 2023, has a history of strategic acquisitions and expansions. This latest acquisition of Net Gaming Solutions aligns with Evoke’s ongoing strategy to strengthen its market presence through targeted mergers and acquisitions.