NetEnt has announced to have bought Red Tiger, an online provider of games and software for casinos, in an all-cash deal. This deal is for GBP 200 million, plus another GBP 23 million in 2022. NetEnt expects to earn GBP 23 million in 2022.
With nearly 170 employees living in the Isle of Man, Malta, and Bulgaria, the total worth of Red Tiger in 2019 including interest, taxes, depreciation, and amortization are expected to reach GBP 18 million.
NetEnt expects to capitalize on Red Tiger’s already sound company and help the technology development to meet their vision.
As per Therese Hillman, the CEO for NetEnt, she is happy to bring Red Tiger into NetEnt Group. She said this merger helps combine two leading and innovative companies in the casino industry. She also stated that should look forward to working with Red Tiger’s team including the operators and players who know and love the Red Tiger brand. Hillman hopes to gain significant revenue through the acquisition.
On the other hand, Gavin Hamilton, the current head of Red Tiger, is also happy with the purchase by NetEnt. NetEnt has a strong distribution network and geographic business to help bring new options for Red Tiger. The company expects to see significant growth in the next few years due to the acquisition.
NetEnt will pay GBP 197 million for Red Tiger Company and after 2022, based on earnings, Red Tiger may get an additional amount of up to GBP 23 million. The total payout amount could be GBP 223 million which is twelve times the estimated earnings for 2019.
This purchase cash deal is happening through Danske Bank and Nordea, which are called debt facilities. Lazard is acting as the financial advisor.
NetEnt has been a pioneer in the digital industry since the beginning of online gaming. It started as a company offering online casino products in 1996, just two years after the release of the World Wide Web. With over 1,000 employees across Kiev, Stockholm, Krakow, Malta, Gibraltar, Gothenburg, and New Jersey, NetEnt web public on NASDAQ Stockholm and start raising money.
Both the companies are happy with the deal and looking forward to seeing what NetEnt can do for the success of this deal.