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NetEnt Acquires Red Tiger Gaming in a Deal Worth £220 Million
- September 10, 2019 By Riley Wilson -
NetEnt has announced it has completed the acquisition of the Isle of Man-based online games developer Red Tiger Gaming.
According to available information, the cash deal was worth £197 million, while the remaining amount of £23 million will become payable after 3 years, in 2022 and will depend on Red Tiger Gaming’s performance.
An Important Move
Founded in 2014, Red Tiger Gaming has since become recognized for its daily jackpot games. Today, the company employs around 170 people in offices in Isle of Man, Bulgaria and Malta. Red Tiger Gaming has so far had a successful year, while the latest financial update revealed its earnings before interest, taxes, depreciation and amortization (EBITDA) were expected to reach £18 for 2019.
This move represents an important part of NetEnt’s future strategy. Over the last couple of years, the online slot specialist has been focused on expanding its global presence and reaching new customers on regulated markets. Thanks to this acquisition, NetEnt will be able to utilize its scalable technology to support its future growth.
The renowned gaming company has also revealed this move is financed through new debt facilities provided by Danske Bank and Nordea.
Both Sides Looking Forward to Working Together
Speaking about this move, Therese Hillman, Chief Executive Officer at NetEnt said she was very pleased to welcome Red Tiger into the NetEnt Group.
Hillman pointed out the acquisition combined two of the leading and most innovative companies in the online gaming industry and added they were looking forward to working with Red Tiger’s fantastic team to enhance their combined global reach and to offer further value to operators and players.
Gavin Hamilton, CEO of Red Tiger Gaming said the company would remain focused as always on driving further innovation and added they were looking forward to working with NetEnt on how to leverage their combined capabilities to create new products for their customers.
He added they were delighted to become part of the NetEnt group, and pointed out that accessing NetEnt’s unparalleled distribution network and geographic footprint would unlock new opportunities for the company and would further accelerate their growth.
No doubt this move will further cement NetEnt’s position as one of the leading developers of online casino content.