In light of ongoing speculation that Swedish online gambling software provider could acquire rival and compatriot company NetEnt, this news has caused considerable rumblings in the industry.
It is news really that has come out of nowhere given the fact that NetEnt is successful in their own right and are known as one of the most notable developers in the marketplace alongside giants Microgaming and Playtech. The bid that is understood to be on the table is in excess of £1.6 billion and this would arguably create the largest software provider in the industry.
Below we have taken a closer look at what this touted acquisition could mean for the industry as a whole if this happened.
By combining an already expert workforce, it will undoubtedly mean that the quality of the two company’s slots and games could increase by another level. While boasting arguably some of the best titles in the industry to date, it is going to be very intriguing to see what the Swedish superbrains can come up with next.
In addition to this, it should also mean that more people can work on each project and as a result of this, no stone will be left unturned. Although having such a large amount of people can cause communication issues in a company, the fact that these are likely to be spread out across multiple offices which each have their own function might make for an increasing amount of success.
There is no doubt that by combining workforces that this should lead to a much higher level of efficiency, especially in terms of a production perspective. Because of this, it could mean that slots and games are developed at a much faster rate, while even more expertise from a marketing standpoint could see them gain awareness more rapidly.
While there might well be teething problems initially, having more people, especially in the programming department is likely to see games released quicker than before. It could also help them to reach new global segments such as the blossoming US and Canadian markets, which could open up even more possibilities for the software provider. This could definitely be the case in terms of attracting new clients.
Slots With Higher Payouts
The increased amount of investment that this acquisition could unlock may lead to slots and games being created which have much higher payouts. This means that it could well lead to increased popularity and them forging a reputation as developing the most lucrative slots in the industry.
Already NetEnt is particularly well known for their jackpot slots and having Evolution Gaming on side can help to propel them even further into the stratosphere.
Both companies already focus a lot on the development of new technology though having more people and also more surplus revenue could well mean that they can bring innovative software to the industry.
Over the next few years, there is believed to a considerable amount of emphasis placed on the creation of new technology, especially centred around virtual reality and this deal could definitely see some of the most sophisticated developed with the joining of two major forces.
Evolution Gaming has already rebranded as ‘Evolution’ and there are some who believe that this is in anticipation for an upcoming acquisition, though could this be the start of a super brand? The operator equivalent is undoubtedly GVC Holdings who own the likes of Ladbrokes Coral, Bwin and Sportingbet to name just a few, with in excess of 25 under their umbrella.
This deal could also lead to ‘Evolution’ as they are now known might be the start of a string of acquisitions there being plenty of smaller, more agile software providers primed for takeover if the variables are right.
The word ‘evolution’ from this perspective essentially has connotations of a rebirth of the company and as such, it also suggests that they have ambitious plans for the future. Their end goal? Who knows, but if they are planning on eventually being acquired themselves in an industry related deal, surely only operator groups such as GVC have the clout to finance such a deal?