NetEnt Acquire Red Tiger in a $270 Million Deal
06 September 2019
NetEnt and Red Tiger have signed brand new deal. This should help one of the most famous game providers to continue global dominance and plan further expansions. We are excited to see what NetEnt’s plans are for the US market.
NetEnt have been providing casino games for US operators like Unibet, 888 Casino and SugarHouse for as long as the US market has been open. Now, they want to expand their presence.
Fellow casino providers NetEnt and Red Tiger have confirmed a massive deal that will join them together and strengthen them both in a crowded industry in years to come. The Swedish-based gaming system suppliers are already one of the most recognizable brands in the niche and the acquisition of Red Tiger will no doubts make them even more successful and confirm their global dominance.
Going into the details of the transaction, we can confirm the complete deal is worth around $270 million. NetEnt are to pay $245 million right away, while the remaining $25 million fee depends on the financial performance but will likely be also paid by 2022.
Red Tiger’s massive jackpot
Red Tiger thus took advantage of the momentum created after the success their most recent jackpot product has achieved. The Daily Drop Jackpot Network was only launched in April 2019 but has paid over $3 million in daily jackpots since.
This casino game creator has been in the business for five years. They have grown into a prosperous company with more than 170 employers over the years. They now run offices in Bulgaria, Isle of Man, and Malta. Their EBIDTA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for 2019 is predicted to exceed $22 million. They have been very active on the market in the last couple of years closing several high-value deals with reputable companies in the niche.
NetEnt look to create the future of gaming
The purchase of Red Tiger only confirms NetEnt’s ambitions of becoming the formidable force in the industry. With the aforementioned $245 million payment, the Scandinavian company will acquire 1000 percent of the shares of Red Tiger. An additional $25 million fee is dependent on the company’s financial achievement by 2022. Danske Bank and Nordea will finance the purchase via the new debt facilities.
NetEnt’s expected revenue from the third quarter of the year is set at around $5.7 million. Therese Hillman, the CEO, was clearly excited about the deal, stating it would join two of the most innovative companies in the entire industry. The Swedish company’s representatives are convinced in the success of the deal claiming it will only help them explore new sights and expand their reach all across the globe.
Red Tiger’s chief executive, Gavin Hamilton, was also delighted with the transaction underlining the opening of new opportunities for his company.
NetEnt’s growth in the US market
NetEnt have created a reputable name in the online gaming industry on the global level, but they have been very active in exploring the US market of late. They were among the first ones to gain a temporary license in New Jersey and they’ve managed to make it permanent and earn a license by the New Jersey Division of Gaming Enforcement in the summer of 2019.
They have made an instant move on Pennsylvania’s online gaming market as well as the state has introduced maiden online casinos in July 2019.
There are no doubts NetEnt’s inaugural acquisition in its history will bring a win-win situation for both casino games developers. We are all excited to see the full impact of the deal in months to come.