Bragg continues US expansion with Wild Streak Gaming acquisition3rd June 2021 7:44 am GMT
Toronto-listed Bragg Gaming Group is continuing its US expansion with the acquisition of Las Vegas-based game development studio Wild Streak Gaming.
Bragg has acquired Wild Streak for $10m in cash and $20m worth of Bragg shares, which will be distributed over the next three years, subject to acceleration in the event of a change of control.
Together with the pending acquisition of Spin Games, the deal advances Bragg's acquisition strategy and increases its ability to distribute and develop online casino content to the US market in-house.
Founded by Doug Fallon, who spent more than 11 years developing games at Aristocrat, Wild Streak currently has a portfolio of 39 casino games, including several top performing land-based titles, as well as mechanics and features that are specifically tailored for US markets. Its recent online slot releases include Dragon Power, Congo Cash, Temujin Treasures, and Amazing Money Machine.
Last year, Wild Streak posted revenue of $1.05m, with the first quarter of 2021 seeing revenue climb to $487,000, generating EBITDA of $241,000 during the quarter.
“In an industry where premium content is king, Doug and his team have built up an enviable track record of developing leading premium casino slot content for both the land-based and online casino industry,” said Bragg Gaming CEO Richard Carter.
“We look forward to integrating this know-how into Bragg’s overall offering and significantly expanding the company’s higher margin proprietary in-house casino slot content capabilities.”
Following the acquisition, Fallon will join Bragg as managing director of group content and will play a key role in leading Bragg through its US content creation strategy. He will also collaborate closely with the supplier's European development staff to facilitate the cross-selling and repackaging of Bragg's proprietary European content for US operators.
“We expect this transaction to be materially enhancing to both revenue and EBITDA in the first full year of ownership, as well as strategically compelling given Wild Steak brings a wealth of US market casino games insights into the group, including valuable game designs, advanced game mechanics and features that are specifically tailored for and proven in the US market,” added Carter.
"We welcome Doug and the whole Wild Streak team onboard, and we look forward to leveraging Doug's expertise to lead our US and global content creation strategy.”
Fallon commented: “Richard and the Bragg Gaming executive team have put in place the strategy and key components to accelerate their growth and market share in the iGaming market, and Wild Streak is excited to be a cornerstone for their growth strategy.
“We are highly impressed with the Oryx Gaming technology stack's robust foundation and their roadmap for additional capabilities in development. We are looking forward to working with the Oryx team to create unique player experiences as we embed their technology into our game designs.
"As the trends indicate, much of the historical content designed for Europe does not resonate with the traditional American player and we believe our background is an ideal fit with the Bragg Gaming Group as it focuses on this emerging market.”
Shares in Bragg Gaming Group Inc (TOR:BRAG) closed 2.78 per cent lower at CAD$15.36 per share in Toronto Wednesday.