Deal of the Century: NetEnt Acquires Red Tiger
The largest provider of gaming software NetEnt announced the acquisition of the company in early September Red Tiger Gaming. The funds in the amount of £200 million will be transferred to the seller's accounts in the near future. The agreement provides for additional transfers of another £23 million by 2022.
Representatives of the manufacturer NetEnt stated that this profitable deal will expand the company's technical capabilities and make an excellent reserve for future development. The developer's board of directors already has a vision of how gambling should develop after the deal is completed.
According to NetEnt CEO Teresa Hillman, she is pleased that the two leading gaming software companies are merging. At the same time, NetEnt's profits will increase in the near future due to the global reach of the different countries in which the company is present. Innovative online games will continue to thrive.
Red Tiger CEO Gavin Hamilton fully agrees with the partner and added that the merger with NetEnt will allow access to the network of one of the best providers of our time. This opens up new opportunities for Red Tiger and allows it to develop as part of the largest holding.
Recall that the Red Tiger company was founded in 2014. The jackpot network launched by the company in April 2019 has already paid out more than £2.5 million to players. Today, the company employs 170 people who work in Malta, the Isle of Man and Bulgaria.
The deal requires NetEnt to pay almost £200m for a 100% stake in Red Tiger. If the board is satisfied with the financial performance of the new Red Tiger division within NetEnt over the next two years, a further £23m will be paid in 2022.
According to the holding's financial department, NetEnt's profit for the third quarter of this year was about 5.8 million US dollars. The funds for the deal were obtained in the form of loans from Nordea and Danske Bank.
