The Purchase of Nolimit City Confirms Evolution’s Quality-Over-Quantity Strategy?

Evolution, one of the leading names in online gambling, has recently made the headlines after agreeing to acquire Nolimit City. The gaming giant will initially pay €200 million, with the total consideration going up to €349 million.

Nolimit City is a well-known name for any fan of the online slot segment. The developer prides itself on the innovative approach to producing high-quality games with unique themes and humorous touch. The releases created by Nolimit City provide a distinctive playing experience with captivating visuals and immersive features. The company’s award-winning portfolio includes such popular titles as San Quentin, Mental, and East Coast/West Coast.

The acquisition is in line with the company’s strategy of leading the online casino segment and providing its players with the best gaming content. This strategy also focuses on quality rather than quantity, an approach that should help Evolution further cement its market positions.

Quality over Quantity

The 2020 acquisition of NetEnt showed that Evolution had one specific goal: to become a “one-stop-shop” for online casino operators worldwide. And that’s why the recent move makes perfect sense. Its goal is to help the company’s RNG division grow.

The company’s RNG segment hasn’t lived up to the expectations, but not because it lacks quality. On the contrary, the game maker has opted for a strategy that focuses on the quality of slot content and avoids frequent launches.

Following the acquisition of NetEnt and Red Tiger, Evolution ditched the existing game launch pipeline as it didn’t meet its high standards. Fewer new games affected the company’s growth in this segment, making it more challenging. Will the latest addition to the Evolution family change this, or will things stay the same?

The Answer is Simple

Nolimit City perfectly fits with the company’s existing strategy that has been in effect since the NetEnt purchase. The slot developer produces unique releases focused on innovation and quality, so we shouldn’t expect an increase in output anytime soon. Nolimit City’s slots are recognizable and target advanced slot enthusiasts, although players of all types enjoy them. But thanks to their visual properties, attractive features, and immersive mechanics, everyone knows they’re playing a game from Nolimit City. And that’s something that won’t change in the future.

The deal confirms Evolution will stick to its slot strategy.

What about Integration?

Integration of Nolimit City should be easier as Evolution now has the necessary experience. NetEnt and Red Tiger had a more extensive portfolio, and the experience from that move would be essential this time.

However, it’s believed the latest deal won’t provide the company access to more operators. Since around sixty releases will be added to the Evolution portfolio, representing a smaller acquisition. Nolimit City’s slots won’t significantly affect the supplier’s global content chare and may increase it by up to 1%.

The good news is that games by Nolimit City boast good distribution and can be found at around 10% of all online casinos. But, considering Evolution’s current reach, the deal will expand its presence to possibly twenty new operators.

What to Expect Next?

According to available information, Nolimit City’s financials reveal excellent efficiency in making a profit. That’s why Evolution expects to generate €30 million in revenue this year alone, with EBITDA estimated to be around €23 million.

These figures resemble those of Big Time Gaming, the developer Evolution acquired last year. Evolution boasts some of the best margins in the industry, despite not prioritising it over growth. The same can be said for acquisitions, where quality comes first.

Slots represent a logical segment for Evolution to increase its presence. However, it shouldn’t come as a surprise if the company expands in the live casino vertical, especially if such a move would add something new to its offering.