Huge deal when NetEnt buys Red Tiger

Thursday, september 5 announced NetEnt has signed an agreement with Red Tiger Gaming Limited. simply buy the entire company. NetEnt will buy 100% of the shares and the price tag is basically equivalent to almost 2.4 billion New Zealand dollar .

The acquisition is also NetEnt's first when it comes to taking over another game developer.

A strategic business for increased growth

NetEnt has a strong brand, a wide catalog of slots and a distribution network that beats most things. Red Tiger Games has an ever-growing range of popular games and a great power of innovation. The possible synergies of this, what NetEnt pushes in its press release$ing is the recently reached agreement. This was further concretized at a conference call when NetEnt CEO Therese Hillman said that " consolidation and increased scale” will be central to growth.

This deal cost NetEnt £ 197 million in a first stage. If the financial development of Red Tiger Gaming develops in the right direction according to the terms of the agreement, an additional purchase price of up to 23 million points can be paid out in 2022. According to the press release, NetEnt pays the purchase price with its own cash register and bank loan.

Red Tiger grows so it creaks

Just a few years ago, Red Tiger Gaming was still considered a smaller player, despite having delivered slots ever since its founding in 2014. When in 2018 they started shipping out slots with linked daily jackpots however, the development took off significantly. Almost overnight, Red Tiger Gaming made it into the top 10 list of the most represented game developers at New Zealand casinos. Since sometime during the summer of 2019 the developer actually number three in New Zealand , only boarded by play'N GO and just NetEnt.

You can find games from Red Tiger at almost every New Zealand online casino. In addition, many of the titles usually take up space far up in the lobbies. Games like Dragon ’ s Fire, Pirates 'Plenty and Ninja Ways' it is not uncommon to be in the top 10 or top 20 on the leaderboards of bookmakers.

What do the experts say?

NetEnt is a company that is listed in Stockholm. The development of the company is therefore analyzed not only by US players, but also by banks, analysts and investors. Since the news of the deal was released, the debate has been in full swing and scores of experts have had clear opinions about the acquisition and its importance to NetEnt.

There is no direct consensus, but it can be said that m on̊ experts say the purchase is r l on̈ mpligt . NetEnt's growth has fallen significantly in recent years and with Red Tiger you suddenly automatically get a bigger growth again. Many people also think that it was simply time for NetEnt to show some offensive will.

At the same time, it is clear that many believe that the price tag on Red Tiger was set way too high . It is something that is not difficult to agree with. Namely, the price is equal to twelve times the annual profit, which is really high in this industry. Some$ITIC voices also believe that NetEnt should focus on Live dealer casino instead of buying more slots. Live casino is a game type for which NetEnt is hopelessly far behind, among other things, Evolution Gaming.