The casino game developer NetEnt has reached an agreement that will allow it to take full control of Red Tiger Gaming, the slot machine specialized firm, worth up to £ 220 million (€ 245.3m / $ 271.4m).
This is the first major acquisition in the history of the company listed in Stockholm. The cash acquisition of Red Tiger has an initial value of about £ 197 million. A profit of up to £ 23 million payable in 2022 will follow.
The CEO of NetEnt, Tehrese Hillman was pleased and “very happy to receive Red Tiger in the NetEnt Group.
“While stressing that this “acquisition combines two of the leading and innovative companies in the online gaming industry”.
Hillman is optimistic about working with the company’s staff:
“We look forward to working with the fantastic Red Tiger team to improve our combined global reach and offer more value to operators and players. The transaction will provide significant revenue synergies in our markets around the world.”
Red Tiger was founded in 2014 by the team of the online casino games provider Cayetano Gaming. Since then the company has positioned itself as a leading provider in the gaming industry, especially with its Daily Jackpots, which has been very successful among players. Currently, it has a staff of about 170 employees and operates in Malta, Bulgaria and the Isle of Man.
“This is an exciting new stage in the history of Red Tiger and we are delighted to be part of the NetEnt group. Access to NetEnt’s incomparable distribution network and geographic footprint will unlock new opportunities for Red Tiger and further accelerate our growth”, said Red Tiger chief executive Gavin Hamilton.
He stressed that the company will remain as always focused on
“promoting greater innovation and we hope to work with NetEnt on how to take advantage of our combined capabilities to create new products that surprise our customers.”
The agreement indicates that NetEnt will pay an initial amount of 197 million pounds for 100% of the company’s shares. Another 20 million pounds could be paid in 2022, according to the financial performance of the company, which has a maximum business value of £ 223 m.
NetEnt revealed that with this acquisition, it will have to disburse some SEK 55 million in other financing and transaction costs. The purchase of the company is financed mainly through two lines of credit from Danske Bank and Nordea.