One of the leading online gambling platforms, Swedish NetEnt has signed an agreement to procure quickly-rising Red Tiger Gaming Limited, a.k.a Red Tiger, an online slot supplier. NetEnt signed Red Tiger for a couple of days ago. This all-cash deal has been signed with the value of GBP 200 million. In addition to a possible added amount of at most GBP 23 million in 2022.
Benefits when NetEnt signed Red Tiger
Founded in 2014 and with about 170 employees as of now, Red Tiger is a top online supplier of casino games and software. It is well-known for its everyday jackpot games. Talking about its earnings in 2019, it is expected to be GBP 18 million before interest, taxes, depreciation and amortization, i.e., EBITDA.
NetEnt has its vision for the future of gaming and acquiring Red Tiger is a significant step towards that vision. It gives them an opening to take advantage of its ascendable technology to support future development plans. In the last many years, the company has invested in a worldwide infrastructure. Its main focus is on reaching a wide range of markets and customers all over the world.
Who said what between NetEnt and Red Tiger?
According to the CEO of Red Tiger, Gavin Hamilton, it is a new phase for the story of Red Tiger and the company is very pleased to be a NetEnt group. He further added it would continue to work on innovations and that NetEnt’s supreme distribution network and the geographic trail will open new opportunities for Red Tiger.
Similarly, NetENt is also happy with the acquisition. Therese Hillman, CEO of NetEnt Group, said that he is pleased to welcome Red Tiger into the NetEnt Group. And the group is looking forward to working with Red Tiger’s superb team to improve their global reach and add more value to operators and players.
Funding
The acquisition has been funded mainly through new debt facilities offered by Danske Bank and Nordea. Also, Lazard has performed as financial advisor. And Cirio Advokatbyra has acted as a legal advisor during NetEnt’s deal with Red tiger.
Market reaction
The market has shown confidence in NetEnt. This Swedish game provider presence has escalated substantially after its £220m ($272.1m) acquirement of Red Tiger Gaming. Since its announcement of the acquisition, investors have thus far responded well to the deal. It is visible with the rise in the company’s share price from SEK 25.60 or about $2.63 last week. Stakeholders have until now acknowledged the tactical benefits of the merger. Together with Red Tiger boosting market share in both Asia and the UK, it is fitting nicely with NetEnt’s present goals.
Furthermore, NetEnt is also planning to enter into live casinos and mainly in the US in general. All things
About NetEnt
NetEnt is a prominent digital entertainment company and it offers first-rate gaming solutions to the world’s most flourishing online casino operators. Since its launch in 1996, NetEnt has been a real inventor in motivating the market with exciting games power-driven by a front-line platform. NetEnt is dedicated to assisting customers to stay ahead of the competition and deliver the best experiences. Spinsify UK recommend you to try out NetEnt Slots at GreenPlay Casino!
