€245m Purchase: Netent Buys Red Tiger!
NetEnt, one of the world’s premier casino software suppliers have successfully acquired up-and-coming slot provider Red Tiger in an all-cash deal worth £220m (€245m).
Stockholm based NetEnt will pay an immediate £197 (€220m) for 100% of Red Tiger shares, with the move being financed primarily via debt facilities with Nordea and Danske Bank. The remainder of the £220m price-tag could become payable in 2022 through an earn-out arrangement based on the future performance of the business. The purchase price represents just over 12 times Red Tiger’s expected EBITDA of £18m (€20m) for the full year 2019.
Malta-based Red Tiger was formed by a team of industry veterans in 2014 but rapid growth has seen their employee count rise to 170 spread across Malta, Bulgaria, and the Isle of Man. Popular slots such as Pirates’ Plenty Battle for Gold, Dragon’s Luck, Mystery Reel Megaways, and Tiki Fruits have helped Red Tiger reach top 10 provider status in most significant territories.
NetEnt Group CEO Therese Hillman said of the acquisition:
“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,”
Speaking on behalf of Red Tiger, the company’s CEO Gavin Hamilton, said:
Gavin Hamilton, CEO of Red Tiger, said:
“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.”
According to NetEnt, the purchase will allow them the opportunity to capitalise on their scalable technology to support future growth.
NetEnt continues to lead the way in online slot provision, with games such as Starburst, Gonzo’s Quest, Dead or Alive 2, and Butterly Staxx all commanding top 10 status in multiple territories. The Acquisition of Red Tiger will only serve to enhance its position in the industry.