One of the most respected global games providers, Net Entertainment (otherwise known as NetEnt), has bought out rival firm Red Tiger Gaming. The deal was reported as being all cash and values Red Tiger Gaming at roughly C$325 million. However, a further C$38 million could be added onto the deal in 2022 depending on the performance of Red Tiger’s games portfolio once it has been fully integrated into NetEnt’s massive roster of slots, table games and more.
The transaction has already gone through, according to several reports on the acquisition. NetEnt subsequently said that they plan to port all of Red Tiger Gaming’s catalogue of online slots across to their own network by 2020. Both companies have their headquarters in Malta, Europe, which should make any subsequent staff movements from Red Tiger to NetEnt a little easier to work out logistically. However, as with many modern gaming companies, Red Tiger also have additional offices based in the Isle of Man (off the coast of the UK) and Bulgaria.
Red Tiger Gaming Limited was founded in 2014 and quickly became one of the leading suppliers of online casino games, although not at the level of NetEnt, which is considered to be the largest games supplier in the world. The award winning Red Tiger Gaming specialises in online slots (including popular progressive jackpot slots) and table games such as roulette, blackjack and baccarat. One stand out feature of the portfolio is the daily jackpot games, which brought the company recognition within the European iGaming industry. And with several respected licences under their belt, including the United Kingdom Gambling Commission (UKGC), Malta Gaming Authority (MGA) and the Gibraltar Gambling Commission (GGC), their games are licenced for worldwide distribution – this also includes Canadian online casinos.
As it stands, Red Tiger Gaming is projected to bring in earnings totalling up to C$30 million before the end of 2019. This figure does not include taxes, interest, depreciation or amortization, but is nevertheless a very healthy margin that must have attracted the owners of NetEnt. But that’s not the only reason for the acquisition, according to both sides of the deal at least…
While bringing in a number of popular online slots, jackpot slots and table games in one fell swoop, NetEnt’s aggressive strategy of buying out a well known rival has other benefits. Chief among these is the ability to use Red Tiger Gaming’s scalable technology to further extend NetEnt’s global reach. That means we can only expect NetEnt to continue growing at an astonishing rate well beyond 2020 – the time when Red Tiger’s games will be ported over.
NetEnt’s Group CEO Therese Hillman reiterated that the company not only wished to acquire the full Red Tiger portfolio of games but also make use of the expertise within the company. She said “We look forward to working with Red Tiger’s fantastic team to enhance our combined global reach and to offer further value to operators [casino brands] and players”. From this, we can surmise that jobs at Red Tiger Gaming are safe for the moment – fingers crossed that it continues to be the case, as CasinoTop highly rates the company’s recent games output.
Red Tiger won’t be ceasing as a company, however, as they will still continue to produce more games under the Red Tiger label. However, the company will fall under the NetEnt group. Gavin Hamilto, the Red Tiger CEO, added that “Accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger”. He went on to state that joining forces with NetEnt will help Red Tiger accelerate its growth across the world.
The Red Tiger CEO’s parting statement should be good news for Canadian players looking for new games in the coming years: “[Red Tiger will] 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”. So, CasinoTop says cheers to that!