Swedish software manufacturer NetEnt has completed its first acquisition in the history of the company and taken control of the slot specialist Red Tiger Gaming. The value of the company Red Tiger is expected to amount to 245.3 million euros.
The takeover negotiations of NetEnt and Red Tiger are now complete. The Swedish company NetEnt pays around 220 million euros to obtain 100% of the shares of Red Tiger. A further approximately 23 million euros can be paid again by 2022. The basis is Red Tiger’s financial performance over the next two years. For example, the current purchase price of £ 220 million (around € 245.3 million) for the software manufacturer Red Tiger is composed.
It was agreed once again to pay a multiple of the earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2019, which is expected to reach £ 18 million.
At first glance, companies have little in common. NetEnt’s head office is Stockholm, Red Tiger comes from Malta. The slot machines and the attitudes of the companies are quite different, so I would like to briefly characterize the two companies once.
NetEnt is known as one of the leading developers of Online Slots. Since 1996, the company has been in the iGaming industry and has created real classics among the casino games. With high-quality animations and game mechanics, you enter the players according to best manners. Jack and the Beanstalk, Gonzo’s Quest or Starburst are Slots that certainly every Online casino visitor has heard once. With Dead or Alive, or Dead or Alive 2, but also High Variance Slots, which guarantee up to 100,000 times the profits.
There are now offices in Malta, Stockholm, Kiev, Krakow, Gothenburg, Gibraltar and New Jersey. It employs more than 1,000 people. The company is also listed on NASDAQ in Stockholm.
Red Tiger was founded as a Maltese company in 2014 by the Team behind Cayetano Gaming. Meanwhile, one is working on the island of Malta, the Isle of Man and in Bulgaria. The company has a total of 170 employees.
Real classics have not yet become established by Red Tiger. There are certainly many Games that you know and appreciate, but real classics the company has not yet produced. For this, man is currently very active in the Jackpot industry and has created with the Daily Jackpots a real unique selling point in the Online Casino industry.
Teherese Hillman is the managing Director at NetEnt, and has expressed his joy for the Acquisition, expression and Red Tiger is located in the company’s group-friendly :
The acquisition brings together two of the leading and most innovative companies in the Online Gaming industry. We look forward to working with Red Tiger’s fantastic team to improve our global reach and add value to operators and players.
Gavin Hamilton is the managing director of Red Tiger and once again pointed out the following:
This is an exciting new Phase of the story of Red Tiger, and we are happy to be part of the NetEnt group. Access to NetEnt’s unprecedented distribution network and geographic presence opens up new opportunities for Red Tiger and further accelerates our growth. At Red Tiger we will continue to focus on further innovation, and we look forward to working with NetEnt to work together how we can make our combined skills to create new products that delight our customers.
As a result of the takeover, transaction and financing costs for NetEnt amount to an additional € 51.5 million. The business is mainly facilitated by new credit facilities of Danske Bank and Nordea.
Otherwise, you have to wait and see what the future will bring for the companies. In any case, NetEnt’s product portfolio will be significantly expanded. In some cases you will be able to appeal to other players with the new Games. The advantage of Red Tiger is located, especially in the higher range by NetEnt. With the right Marketing strategy, one becomes even more familiar.
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