Prominent online casino games developer, NetEnt AB, has announced the signing of a deal that is to see it pay up to £223 million ($275.07 million) in order to purchase Isle of Man-based compatriot, Red Tiger Gaming Limited.
The Stockholm-headquartered innovator used an official press release to detail that the all-cash arrangement is to initially involve it shelling out some £200 million ($246.75 million) for the complete shareholding of Red Tiger followed by a maximum of £23 million ($28.38 million) in 2022 based on the subsequent performance of the new acquisition.
NetEnt described Red Tiger as ‘a leading online supplier of casino games and software’ with around 170 employees at offices in Malta, Bulgaria and the Isle of Man that is ‘renowned for its daily jackpot games.’ It additionally stated that it expects to complete the initial stage of this agreement ‘imminently’ to give it control over an entity that is predicted to record aggregated earnings before interest, tax, depreciation and amortization this year of approximately £18 million ($22.21 million).
Therese Hillman, Chief Executive Officer for NetEnt, used the press release to declare that the deal fits perfectly with her firm’s ‘vision to create the future of gaming’ and will give it the opportunity to utilize ‘its scalable technology to support future growth.’
“I am very pleased to welcome Red Tiger Gaming Limited into NetEnt AB. The acquisition combines two of the leading and most innovative companies in the online gaming industry. We look forward to working with Red Tiger Gaming Limited’s fantastic team to enhance our combined global reach and to offer further value to operators and players. The transaction will provide significant revenue synergies across our markets worldwide.”
For his part, Gavin Hamilton, Chief Executive Officer for Red Tiger, proclaimed that he is ‘delighted’ to have inked the deal to make his firm part of NetEnt AB. He furthermore pronounced that the arrangement represents ‘an exciting new stage’ in the history of the developer as it will give it entry to an ‘unparalleled distribution network and geographic footprint’ that is sure to ‘unlock new opportunities’ and lead to accelerated growth.
Hamilton’s statement read…
“At Red Tiger Gaming Limited we’ll remain focused as always on driving further innovation and we are looking forward to working with NetEnt AB on how to leverage our combined capabilities to create new products that wow our customers.”