In a strategic move to bolster its presence in the Romanian online gambling sector, Evoke, the parent company of renowned betting brand William Hill, has announced the acquisition of New Gambling Solutions (NGS), the operator behind Winner.ro. The deal, revealed on August 25, 2024, positions Evoke to significantly enhance its market share in Romania’s thriving digital gaming landscape.
Merger to Create Fourth-Largest Player
Evoke plans to integrate its existing Romanian operations with Winner.ro, currently the country’s seventh-largest online betting and gaming platform. This fusion is expected to catapult the combined entity to the fourth position in Romania’s competitive betting market, commanding an estimated 7% market share. The London-listed company will invest €10 million for a 51% stake in the merged business, with options to increase its ownership to 57% by 2026, contingent on performance metrics.
Tapping into Romania’s Growth Potential
The acquisition aligns with Evoke’s strategy to capitalize on high-growth markets. Romania’s online betting sector, valued at approximately €1.1 billion in 2023, is projected to expand at a compound annual growth rate (CAGR) of 13% through 2026. Winner.ro, launched in 2019, has rapidly gained market traction, making it an attractive target for Evoke’s expansion plans.
Technological Synergies and Market Elevation
Post-acquisition, the merged entity will operate on Evoke’s Newton platform, leveraging advanced data management and automation capabilities. This integration elevates Romania to Evoke’s fifth core market, alongside the UK, Italy, Spain, and Denmark. The deal, pending regulatory approval, is expected to close in Q3 2024 and contribute to Evoke’s earnings by 2025, without impacting the company’s financial leverage or 2024 fiscal guidance.
Leadership Perspectives
Per Widerström, Evoke’s CEO, highlighted the strategic importance of the acquisition: “Integrating Winner into our portfolio marks a pivotal moment for Evoke. This move aligns perfectly with our goal of establishing robust, market-leading positions in key regions. It exemplifies our M&A strategy of pursuing high-impact, capital-efficient combinations that accelerate our strategic objectives.”
Widerström emphasized Romania’s potential: “This merger solidifies our leadership in an exciting growth market. I’m eager to collaborate with the Winner team to drive profitable growth and expand our market presence. With our complementary brands, we’re poised for significant value creation.”
Nicklas Zajdel, Winner.ro’s CEO, expressed enthusiasm about the partnership: “This merger is thrilling, uniting our strong local brand with a global casino leader. Romania’s high-growth market offers immense potential, and this combination positions us for sustainable leadership. We’re excited to leverage our strengths, enhance personalization, and drive market success alongside Evoke.”
This strategic acquisition underscores Evoke’s commitment to strengthening its position in Europe’s dynamic online gambling landscape, setting the stage for continued growth and value creation in the Romanian market.
