NetEnt Acquires Red Tiger Gaming For £200M
NetEnt, in an attempt to promote its strategy to “create the future of gaming” has done a one-up on its market contenders by acquiring Red Tiger Gaming for a sizeable £200 million asking price. The mentioned price represents the initial deposit payable, with a further and final £23 million payable in 2022, depending on Red Tiger’s future performance over the course of the 3 years.
Red Tiger Gaming was initially founded in 2014 and has been consistently building its international support market ever since. The developer recently achieved significant success following the launch of its popular Daily Drop Jackpot Network. Daily Drop has since its launch in April of this year paid out prize money in excess of £2.5 million.
NetEnt Will Build On Success
The acquired developer currently employs at least 170 people at its international offices. Its offices are spread out over Malta, Bulgaria and the Isle of Man. Red Tiger as since its establishment roughly 5 years ago managed to close a significant number of partnership deals and in so doing has made its way into various regulated markets all over the world.
The company has been working tirelessly towards achieving significant global reach and has been quite successful in its endeavours; so much so that its EBITDA is projected to be worth a stunning £18 million by the close of 2019.
NetEnt now hopes to take full advantage of and capitalise on the amazing levels of success achieved by the Red Tiger team. It also recognises that it will further support Red Tiger’s future growth by investing its own capital and development resources into the latter’s business operational structure.
Marriage Made In Heaven
NetEnt also confirmed that the financial resources needed to make the Red Tiger acquisition deal a possibility were made available by Danske Bank and Nordea as part of a new debt structure facility in favour of the Swedish games giant.
NetEnt CEO Therese Hillman considers the acquisition to represent the coming together of two of the leading companies currently actively doing business in the global games market. Hillman said that one of the main drivers behind the acquisition offer and deal is the possibility of extending NetEnt’s own global reach into more regulated world jurisdictions.
Significant scales of revenue are expected to be generated by the new Red Tiger Gaming acquisition deal.