Red Tiger Gaming Acquired by Swedish Software Provider NetEnt for £220m
Red Tiger Gaming, the leading online supplier of casino games and software has just been acquired by rival software operator – NetEnt in a deal worth £220million. Established in 2014, Red Tiger emerged as a major player in the iGaming scene in just a matter of months and this is thanks to highly innovative slots with engaging gameplay. Red Tiger Gaming are single-handedly responsible for revolutionising the term ‘progressive jackpot’, what with a series of must drop jackpots.
The company with operations in Malta, Bulgaria and the Isle of Man currently has approximately 170 employees. Estimated earnings before interest, tax, depreciation and amortization (EBITDA) could reach as much as £18million for the whole year of 2019. NetEnt have a vision to recreate the future of gaming and this deal is part of the overall outlook, plus it allows them to capitalise on scalable technology to enhance future growth.
Acquisition Comments and Costs
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 added: “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.”
An initial consideration of £197m is to be paid by NetEnt for 100% of Red Tiger’s shares and in addition to this, the remaining £23million is to be paid in 2022 on an earn-out basis, subject to the performance of Red Tiger’s financial performance over the next two years. NetEnt’s estimated income for Q3 of 2019 is to come in at SEK 55million. The deal is to be financed through new debt facilities provided by two firms; Danske Bank and Nordea.
Popular Red Tiger Gaming Titles
Golden Leprechaun Megaways is a new release for September 2019 and features as many as 117,649 ways to win in a single spin! Multipliers of up to 10,000x can boost your stake and bonus features include free spins with one of three bonuses; randomly added wilds, sicky wilds or lucky ways.
Royal Gems is yet another September release featuring cluster pays, multipliers and sticky symbols! Land a win and the winning symbols will be locked in. Take a spin and if more matching symbols appear, the process continues once again. Fill the entire grid with matching symbols (of any kind) and receive a 2x multiplier on all winnings!