evoke (LSE: EVOK) Expands Presence in Romania with Acquisition of Winner.ro, Enhancing Market Position

August 26, 2024 03:44 PM AEST | By Team Kalkine Media

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evoke (LSE: EVOK) Expands Presence in Romania with Acquisition of Winner.ro, Enhancing Market Position — Image source: © Asolano97 | Megapixl.com

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evoke (LSE:EVOK), a leading global player in the betting and gaming sector known for its prestigious brands including William Hill, 888, and Mr Green, has announced the acquisition of New Gambling Solutions S.R.L (NGS), which operates Winner.ro ("Winner"). Winner, a prominent online betting and gaming operator, ranks as the #7 operator in Romania.

Under the terms of the acquisition, evoke will integrate its Romanian business with NGS, contributing a cash consideration of €10 million on a debt-free, cash-free basis for a 51% stake in the newly combined Romanian business. This merger will unite 888.ro with Winner, positioning the enlarged entity as the #4 operator in Romania with a combined market share of approximately 7%. The new entity will employ a multi-brand strategy, blending a strong local brand with an internationally recognized casino name.

According to a 2026 earn-out calculation, evoke’s stake in the business could range from 51% to 57%, with an option to increase ownership to 100% from the third anniversary of the deal’s completion.

This acquisition aligns with evoke’s strategic focus on high-impact, low-capital growth opportunities. Romania’s betting and gaming market, valued at approximately €1.1 billion in 2023, is projected to grow at a 13% CAGR through 2026, making it an attractive expansion target. The market is characterized by stringent regulations and high localization demands, creating significant entry barriers.

Winner, launched in 2019, has established a strong market presence through its innovative and localized product offerings and extensive retail network, generating approximately €19 million in gross gaming revenue in the first half of 2024.

The merged entity will leverage the Newton platform, enhance ROI through a dual-brand approach, and benefit from evoke’s scale, data analytics, and automation advantages. The combined business will be led by Nicklas Zajdel, the current CEO of Winner, and will utilize local insights from a team of nearly 80 in Romania, complementing evoke's existing 500-strong Romanian workforce.

With this strategic move, Romania will join evoke’s portfolio of Core Markets, which includes the UK, Italy, Spain, and Denmark. The company aims to leverage its enhanced local expertise to achieve a top market position and drive sustainable growth.

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