Evolution Gaming invests 12.4m in office expansion
Live casino supplier snaps up additional office space in Riga to accommodate growing business
Evolution Gaming has spent 12.4m on acquiring additional office space for its rapidly expanding business, the live casino supplier has announced.
The firm has acquired the company that owns the building which accommodates the majority of its operations in Riga, Latvia, where it has been a tenant since 2011.
Evolution said the need to expand the studio floor over the coming years was large, and that the landlord was unable to provide guarantees for further expansion.
“The acquisition provides clear strategic advantages, as we strengthen the control over our future and significantly easier will be able to expand the studio floor space to meet the big demand for more tables and dedicated environments,” Jens von Bahr, Evolution CEO, said.
“Compared to if we had continued as tenants, we also get a slight positive financial impact,” he added.
Evolution said the purchase price was less than the external valuation of the building, and interest costs and amortization will be lower than expected rental costs over the coming years.
The acquisition is expected to complete in January next year with the payment made up of 3.1m in cash and loans of 9.3m.
Last month Evolution Gaming reported a 57% year on year increase in Q3 revenues to 19.5m leading to EBITDA of 7.8m during the three month period.