- NetEnt acquires Red Tiger in £220m deal
- That constitutes 12 times NetEnt’s projected EBITDA for 2019
- The last tranche to be paid by 2022 and valued at £23 million
NetEnt has revealed Red Tiger acquisition, paying £220 million to acquire the rival gaming vendor. The companies are hoping to achieve new synergies and accelerate growth together.
NetEnt Buys Red Tiger in £220m Deal
NetEnt has sent ripples across the iGaming industry landscape with a newly-minted acquisition, first in the company’s history. The company is moving in to assume control over Red Tiger Gaming, a competitor, in a record-breaking $271 million bid or estimated £220 million.
With the deal confirmed and completed, NetEnt has now assumed full control of the company, paying out the equivalent of £197 million in cash. Later, the company will put down additional £23 million payment by 2022. Speaking about the acquisition, NetEnt CEO Tehrese Hillman had this to say:
I am very pleased to welcome Red Tiger into the NetEnt Group. The acquisition combines two of the leading and most innovative companies in the online gaming industry.
Ms. Hillman expressed hopes that Red Tiger would be a perfect fit in the NetEnt’s company culture. Furthermore, the company would give NetEnt additional reach in the iGaming world, bring more value to operators and players.
Not least of all, NetEnt expects more synergies between the companies, owing to their global footprint.
Red Tiger’s Quick Growth
Red Tiger arrived rather late in the iGaming landscape, opening doors in 2014 with its original team behind a gaming project, Cayetano Gaming. Since then, the company has quickly established itself as one of the go-to vendors, providing quality gaming products and daily jackpots to casino players and brands.
Today, Red Tiger operates from three countries, specifically Malta, the Isle of Man and Bulgaria with over 170 employees on its payroll. Commenting on the latest operation, Gavin Hamilton, said that the acquisition was a new stage for the development of the company.
“We are delighted to be part of NetEnt,” Mr. Hamilton added. He also praised the Stockholm-listed operator for its “unparalleled distribution network and geographic footprint”. All of this, Mr. Hamilton said, would hopefully let Red Tiger boost its 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.
NetEnt is also paying a substantial chunk for the acquisition. The cited £220m is equal to 12 times the company’s EBITDA for 2019, which is expected to hit £19 million this year. The deal was conducted with the help of Lazard, which served as financial advisor, and Cirio Advokatbyrå, a law firm, which advised NetEnt legally.
To date, NetEnt is one of the largest iGaming vendors with a number of branded slot games, such as Jumanji™ video slot, Emoji Planet video slot™, Planet of the Apes™ video slot, Universal Monsters™ The Phantom’s Curse, Guns n’ Roses™, Dracula™, The Invisible Man™, Motörhead Video Slot™, and others.
At the end of 2018, the company vowed to boost its game making department in a bid to release close to 40 titles in 2019.
Photo credit: NetEnt and Red Tiger Twitter feed.