Gaming supplier Evolution AB has launched a €2 billion ($2.3 billion) share buyback programme after receiving shareholder approval at its annual general meeting in April. The company said the move is aimed at optimising its capital structure and increasing shareholder value.
The buyback programme was announced alongside a €300 million revolving credit facility designed to maintain liquidity during the repurchase process. The company said the facility will provide financial flexibility while the buyback scheme is active.
Share repurchase plan approved
Evolution’s board has authorised the repurchase of shares on Nasdaq Stockholm and other regulated markets. The company appointed an independent investment firm or credit institution to manage the transactions. The timing and execution of the purchases will be decided independently without direct involvement from Evolution.
The programme may continue until the full €2 billion limit has been reached or until the board decides otherwise. Evolution said the buyback period could run through to the company’s 2027 annual general meeting.
Repurchased shares will be bought using cash and within market price limits in line with Swedish regulations. Under current rules, Evolution cannot hold more than 10 per cent of its issued shares. The company currently has 199,226,613 shares outstanding and holds no treasury shares. This means Evolution can repurchase up to 19,922,661 shares under the existing limit.
The board also confirmed that an extraordinary general meeting could be called if the company approaches the 10 per cent holding threshold. In that case, repurchased shares may be cancelled to allow a new buyback authorisation and continue the programme.
Growth shifts towards the Americas
The announcement comes after Evolution reported in its first quarter earnings that growth was being driven mainly by North America and Latin America rather than Europe.
The company has been increasing its focus on regulated online gaming markets across the Americas as competition and regulatory challenges continue to affect several European jurisdictions.
Evolution remains one of the largest suppliers of live casino and online gaming products globally. Its portfolio includes live casino tables, slots and digital gaming content distributed to licensed operators in multiple markets.
Legal and regulatory investigations continue
The capital management strategy arrives while Evolution remains involved in several legal and regulatory matters.
The company is currently engaged in legal proceedings in New Jersey linked to allegations that its games were accessible through unauthorised operators in restricted markets. Evolution has repeatedly denied the claims.
Earlier this year, the company attempted to expand its defamation lawsuit connected to the dispute by adding Playtech to the case. Evolution alleged that Playtech organised and financed a campaign intended to damage its reputation and disrupt its expansion in the North American online gaming market.
According to the claims, Playtech hired private intelligence firm Black Cube to investigate Evolution’s operations in prohibited and unlicensed markets. Evolution stated that the investigation itself had been carried out lawfully.
The Superior Court of New Jersey is expected to decide whether the amended complaint can proceed.
At the same time, Evolution is also under investigation by the UK Gambling Commission over reports that its games were linked to unlicensed gambling websites operating in the UK market. The review has been ongoing for several years and no final outcome has been announced.
Evolution secures backup financing
Alongside the buyback programme, Evolution signed a €300 million senior unsecured revolving credit facility with JPMorgan Chase and Citigroup subsidiaries.
The facility carries a three-year repayment structure with options for two one-year extensions. Evolution described the agreement as standby financing that would help preserve liquidity and support financial flexibility during the share repurchase programme.
The company said the financing arrangement reflects the scale of the planned capital deployment as it moves forward with the buyback strategy.
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