NetEnt has completed its acquisition of Red Tiger Gaming to the tune of £220 million, with payouts to be made in tranches, and the last payout is expected to be completed by 2022. This acquisition brings new prospects to NetEnt in the growing online gambling industry.
The deal has been completed, and NetEnt is now in control of Red Tiger Gaming and is set to pay the rival company a sum of £197 million in cash. The last tranche will cost NetEnt another £23 million, and this will be completed in 2022.
The CEO of NetEnt, Therese Hillman, said that she was very pleased to welcome the Red Tiger Gaming group into the team of NetEnt, and that the acquisition would combine the two leading gaming developers in the online gaming industry.
She further said that she was hoping that Red Tiger would be a good fit to NetEnt’s company values and culture. she also mentioned that Red Tiger would give NetEnt a reach to the iGaming industry, and the acquisition would bring more value to the players and their partner gambling operators or casinos.
Red Tiger’s Breakthrough
Red Tiger was established in 2014, and it is a new player in the industry. The original team behind the Red Tiger group was Cayetano Gaming. After its launch, the company became a powerhouse and quickly became renowned in the online casino industry.
The company mainly operates in Malta, Isle of Man, and Bulgaria. It has over 170 employees, and the Red Tiger Gaming leadership expressed its excitement over the acquisition.
This acquisition will affect NetEnt’s EBITDA, as the deal is equal to 12 times its EBITDA for 2019. This deal was made possible with the help of Lazard, a financial consulting group, and Cirio Advokatbyrå, a law firm.
NetEnt is behind successful games like Jumanji™, Dracula™, Guns n’ Roses™ and others. This year, they are going to release over forty new casino games and strengthen their positions in the gambling industry even more.