NetEnt makes a roar with Red Tiger Gaming acquisition
The leading software developing company NetEnt has entered a deal to acquire the esteemed game manufacturing company Red Tiger.
The iGaming mogul announced the deal which will be realized imminently and is expected to be accretive to NetEnt’s EPS in 2020.
The deal is merely a step NetEnt intends to take in order to achieve global domination.
These past few years, the provider invested in global infrastructure with a focus on clientele in regulated markets.
However, through the acquisition of Red Tiger, NetEnt’s growth will be even more capitalized as both companies are known as top-performers in the online casino industry. From the financial viewpoint, the main channels are the new debt facilities provided by Nordea and Danske Bank.
The value of the deal is ₤200 million which NetEnt will pay out in cash, with a possible additional ₤23 million payment in 2022. The conditions for the additional payment rest on Red Tiger’s performance in the next two years.
Positivity and great expectations are evident in both companies.
Group CEO of NetEnt Therese Hillman expressed the company’s excitement over the latest acquisition, highlighting that Red Tiger will undoubtedly prove to be a valuable asset in terms of revenue and creativity that comes with the new team.
Gavin Hamilton, Red Tiger CEO, added that this is a new and exciting chapter for his company, saying: ”Accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger and will further accelerate our growth.
At Red Tiger, we’ll remain focused as always on driving further innovation and we are looking forward to working with NetEnt on how to leverage our combined capabilities to create new products that wow our customers.”