NetEnt Snatches Fellow Casino Provider Red Tiger
NetEnt announced today that it has entered into an agreement to purchase its fellow online casino content supplier Red Tiger Gaming in an all-cash deal that would enable it to further implement its strategy to “create the future of gaming.”
Under the terms of the transaction, which is expected to be completed imminently, NetEnt would pay approximately £200 million for Red Tiger with the option to pay an additional of up to £23 million in 2022.
Founded in 2014, Red Tiger provides casino games and related software for the international online gambling industry. Most recently, the company hailed the success of its brand new jackpot product – the Daily Drop Jackpot Network, which paid out more than £2.5 million in daily jackpots since its launch in April 2019.
Red Tiger currently employs approximately 170 people at its offices in Malta, Isle of Man, and Bulgaria, and its EBITDA is expected to reach £18 million for 2019. The company’s content is available across multiple jurisdictions through a series of content supply deals it has penned in recent years.
NetEnt said today that the acquisition of Red Tiger would provide it with the opportunity to capitalize on its scalable technology and support its future growth. The Swedish gambling content provider further elaborated that the transaction was in line with its vision to “create the future of gaming.”
Terms of the Deal
NetEnt said it has agreed to pay an initial consideration of just under £200 million for 100% of the shares of its fellow online gaming supplier. The Swedish company could pay an additional of £23 million in 2022 subject to Red Tiger’s financial performance over the next two years.
NetEnt revealed that its income for the third quarter of the year would include approximately SEK55 million (around $5.7 million) in transaction- and financing related costs. The company also said that the acquisition of Red Tiger is financed through new debt facilities, with those being provided by Danske Bank and Nordea.
Commenting on the deal, NetEnt’s CEO, Therese Hillman, said today that they are pleased to welcome Red Tiger and that the transaction “combines two of the leading and most innovative companies in the online gaming industry.”
The executive went on that they expect the addition of Red Tiger to enhance their combined global reach and create significant revenue synergies across their markets worldwide.
Gavin Hamilton, CEO of Red Tiger, added that “accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger” and will further accelerate his company’s growth.
Aside from other jurisdictions, NetEnt has been particularly focused on expanding its footprint in the regulated US gaming market. The company’s content had been available in New Jersey under a temporary license, but early this year it was granted a permanent license by the New Jersey Division of Gaming Enforcement.
The Swedish provider also entered Pennsylvania’s online gambling market following the launch of the state’s first online casinos this past July. NetEnt obtained a license in the Keystone State in March this year.
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The post NetEnt Snatches Fellow Casino Provider Red Tiger appeared first on Casino News Daily.
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