Evoke expands Romanian operation with Winner.ro acquisition

The London-listed firm said the move would see it merge its Romanian operations with Winner.ro, creating the fourth-largest betting and gaming group in the Romanian market with an estimated 7% market share.

Under the terms of the deal, Evoke would contribute its existing Romanian business and €10m in cash, acquiring a 51% stake in the combined entity.

Depending on performance, Evoke's ownership could increase to between 51% and 57% by 2026, with an option to fully acquire the business after three years.

The board said the acquisition aligned with the company’s broader strategy to capitalise on fast-growing markets.

It said the Romanian online betting market, valued at around €1.1bn in 2023, was projected to grow at a compound annual growth rate (CAGR) of 13% through 2026.

Winner.ro, launched in 2019, had quickly established a strong presence with innovative products and a significant local distribution network.

The integration of Winner.ro with Evoke's 888.ro would be managed by Nicklas Zajdel, the current CEO of Winner, alongside a local team.

Evoke said the combined business would operate on the Newton platform, and would benefit from Evoke’s expertise in data and automation.

The acquisition would make Romania Evoke’s fifth core market, joining the UK, Italy, Spain, and Denmark.

It said the transaction, pending regulatory approval, was expected to close in the third quarter, and was projected to enhance earnings from 2025 onward without affecting the company’s 2024 financial leverage or its guidance for the year.

“I am excited to announce the addition of Winner to the Evoke portfolio,” said chief executive officer Per Widerström.

“This acquisition is consistent with our strategy to build sustainable market-leading profitable positions in the most attractive markets.

It is also consistent with our M&A strategy to focus on low-capital, high-impact combinations that accelerate the delivery of our strategy.”

Widerström said Evoke had already enjoyed significant success in Romania, describing it as an “exciting” growth market.

“This combination will cement a leading position for Evoke, and I am looking forward to working with the whole team at Winner to deliver ongoing profitable growth and market share gains, as we deliver exceptional products through two incredibly strong and complementary brands.

“I am delighted to announce the creation of our fifth core market and have no doubt that this transaction will deliver significant value creation on top of our previously announced plan.”

At 0835 BST, shares in Evoke were up 2.6% at 70.84p.

Reporting by Josh White for Sharecast.com.