September 2019 was an interesting time for the iGaming industry. And surely, NetEnt’s acquisition of Red Tiger Gaming stands to be one of the most exciting pieces of news as of yet. Indeed, NetEnt, have just entered an agreement to buy Red Tiger in a deal that have an initial value of £200 Million cash. However, there could also be an addition of £23 Million in 2022.
All and all, both companies look to be completing the deal very soon and should be ready in time to be accretive to NetEnt’s 2020 EPS. NetEnt is already one of the biggest providers in the industry. And it’s seems that they’re not done growing either.
To sum up, Red Tiger is an impressive company in its own right. It has been around since 2014 and is a leading supplier of games. It is most well-known for its daily jackpot games.
Currently, the company has around 170 employees. Plus, it has offices in Malta, Bulgaria and Isle of Man. In fact, for the full year of 2019, its earnings could reach £18 Million before tax, interest, amortization and depreciation.
NetEnt’s purchase of Red Tiger should bring a lot to the group as it can make the most of its scalable technology and grow even more in the future.
Hillman, NetEnt CEO believes that the acquisition of Red Tiger “combines two of the most innovative companies in the online gaming industry”. Red Tiger’s CEO, Gavin Hamilton, echoed these sentiments too. He described it as “an exciting new stage of the Red Tiger story”. He went on to say that they are “delighted to become part of the NetEnt Group”.
Being part of NetEnt will allow them to access their impressive distribution network. Therefore, this will give Red Tiger more opportunities and will see them grow even more. They can now work together to create exciting products to wow their customers.