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Netent bought Red Tiger

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  • Netent bought Red Tiger

    Netent bought Red TigerNetent has bought Red Tiger today. Hopefully, they will include their slots to own portfolio. Here is the official mail:
    NetEnt acquires casino software provider Red Tiger
    NetEnt has entered into an agreement to acquire fast-growing online slot
    supplier Red Tiger Gaming Limited (“Red Tiger”) in an all-cash deal with an
    the initial enterprise value of GBP 200 million-plus a possible additional amount of
    maximum GBP 23 million in 2022. The transaction will be completed imminently and
    is expected to be accretive to NetEnt’s EPS in 2020.
    Established in 2014, Red Tiger is a leading online supplier of casino games and
    software renowned for its daily jackpot games. The company has approximately 170
    employees with operations in Malta, Isle of Man and Bulgaria. Red Tiger’s
    earnings before interest, taxes, depreciation and amortization (EBITDA) is
    expected to reach GBP 18 million for the full year 2019.

    The deal is in line with NetEnt’s vision to create the future of gaming. Over
    the last several years, the company has invested in a global infrastructure
    focusing on customer reach and regulated markets, supporting a platform for
    scale. The acquisition of Red Tiger gives NetEnt the opportunity to capitalize
    on its scalable technology to support future growth.

    “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,” says Therese Hillman, Group CEO of NetEnt.

    Gavin Hamilton, CEO of Red Tiger, comments:
    “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.”

    NetEnt pays an initial consideration of approximately GBP 197 million for 100
    percent of the shares of Red Tiger. In addition to the initial purchase
    consideration, a remaining amount of maximum GBP 23 million may become payable
    in 2022 on an earn-out basis, subject to Red Tiger’s financial performance over
    the coming two years. This implies a maximum enterprise value of GBP 223
    million, corresponding to an enterprise value multiple of c. 12 times current
    year EBITDA. NetEnt’s income for the third quarter of 2019 will include
    approximately SEK 55 million of the transaction- and financing-related costs.

    The acquisition is financed primarily through new debt facilities provided by
    Danske Bank and Nordea.

    Lazard has acted as financial advisor and Cirio Advokatbyrå has acted as legal
    advisor to NetEnt in connection with the transaction.
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