NetEnt Seals New Deal with Red TigerPublished September 8, 2019 by Lee R
A new deal will immediately bulk the coiffures of Red Tiger and the technology of operating giant NetEnt.
NetEnt is joining the race for specialised slots.
In acquiring rapidly growing online slot supplier Red Tiger, Sweden's NetEnt went in on an all cash deal whose initial enterprise value is placed at GBP 200 million with a potential additional amount of maximum GBP 23 million in 2022.
Immediate NetEnt Impact
The completion of the transaction is imminent, and will be included to NetEnt performance this year, accretive to EPS in 2020.
Red Tiger's Expansion
Red Tiger has been establishing a reputation as a leading online supplier of online casino games since 2014, gaining renown for its daily jackpot games.
With approximately 170 employees working across operations in Malta, Isle of Man and Bulgaria. Red Tiger’s earnings before interest, taxes, depreciation and amortization (EBITDA) is expected to reach GBP 18 million for the full year 2019.
The new deal with Red Tiger falls in line with NetEnt’s vision to create the future of gaming.
To this end, the organisation has been scaling up by investing in a global infrastructure focusing on customer reach and regulated markets.
NetEnt CEO Speaks
NetEnt CEO Therese Hillman expressed her pleasure with the new deal:
“I am very pleased to welcome Red Tiger into the NetEnt Group.”
Hillman called the union of “two of the leading and most innovative companies in the online gaming industry” as a joint opportunity to enhance the global reach of both organisations with “significant revenue synergies.”
Red Tiger CEO Speaks
Red Tiger CEO Gavin Hamilton called the deal “an exciting new stage of the Red Tiger story,” expressing delight to integrate “NetEnt’s unparalleled distribution network and geographic footprint” to accelerate opportunities for growth.
CEO Hamilton now looks forward to leveraging the combined capabilities of the two companies “to create new products that wow our customers.”
With NetEnt harnessing new technology for slots, look for the online slots market to heat up even more between major competing operators.