Less than a week ago, Red Tiger Gaming announced that a deal had been struck between them and NetEnt – the Swedish software provider, a deal which would mean NetEnt owning the fast-growing online slot supplier, but it will come at a cost. An initial all-cash deal of £200million has been agreed with a remaining amount of up to £23million being paid in 2022.
The acquisition is to be completed immediately and the deal is said to be accretive to NetEnt’s EPS in 2020. An initial consideration of £197million for 100% of the shares will be paid first and in addition to this, the remaining amount of up to £23million will be paid in three years’ time (2022) which equates to 12x the current year’s EBITDA.
With operations in Bulgaria, the Isle of Man and Malta, Red Tiger has approximately 170 employees. Earnings for Red for the full year of 2019 is expected to reach £18million and the signed, sealed and delivered deal is part of NetEnt’s future vision of gaming and growth.
The Swedish developer’s estimated earning for Q3 of 2019 are SEK 55million (both transaction and financing-related costs). The deal is to be financed through new debt facilities provided by Nordea and Danske Bank.
New Deal New Stage:
Therese Hillman, Group CEO of NetEnt, said: “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. We look forward to working with Red Tiger’s fantastic team to enhance our combined global reach and to offer further value to operators and players. The transaction will provide significant revenue synergies across our markets worldwide.”
Gavin Hamilton, CEO of Red Tiger, comments:
“This is an exciting new stage of the Red Tiger story and we are delighted to become part of the NetEnt group. 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.”
New Deal New Games:
Golden Leprechaun Megaways with as many as 117,649 ways to win in each spin and Royal Gems with its cluster pay formations are two brand-new slots from Red Tiger and both can be played at Jupiter Slots (plus a handful of other sites). Sign up and receive a welcome bonus of up to 500 bonus spins on your first deposit.
Keep your eyes peeled on the Red Tiger-powered bingo and casino sites as a new title is about to be launched; Well of Wishes – the fun-filled slot with wins of up to 5000x your stake can be accessed across all devices (even mobiles) for as little as 20p a spin. The 5-reel, 10-win line slot has a release date of 12th September and great fortunes are promised to those who seek it.
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