One of the most talked deals in the gaming industry in the year 2019 was the acquisition of Red Tiger by Netent. Netent hosts topnetent-casinos and is a gaming marketplace. Red Tiger is a gaming software provider. Here are all the details about this deal.
What is the deal all about?
In September 2019, Netent announced that it is acquiring Red Tiger for an all-cash deal and that it will own all its talent, workforce, and technology. The deal was scheduled to be completed by 2020 and will include combining the games and the gaming sites including https://www.fat-tabby-designs.com .
The deal has already resulted in a considerable reduction in the workforce. Netent mentions that the deal will help them become a stronger gaming provider globally and strengthen their position in the industry. This deal will also make them technologically very powerful and advanced.
How will Netent benefit from the acquisition?
Netent is already a top gaming provider and host for multiple online games and casino slots. It is, however, not the top player. With the acquisition, the brand can work on reaching the number 1 position in this industry and beat its competitors.
The acquisition also seems to work financially for Netent. The brand has projected a savings of SEK 150 million in cash annually, thanks to the acquisition. The acquisition will help the brands pool their strengths and come up with a business model that makes them market leaders.
What can players expect from the deal?
If you are a player, there are so many positive things you can look forward to, thanks to the acquisition. Loyal Netent followers have always requested the brand to bring out better and technologically advanced games. This will now be possible. Other potential benefits to players are listed here.
- Unbelievably big bonuses
- Ability to play awesome games with lesser deposits
- Better user-experience
- Experiencing technically rich games
Red Tiger, though a young brand, has proven to have a strong technological infrastructure. Netent will make use of this technical expertise to better the quality of games offered to players. It will also make an effort to upgrade existing games to improve the user experience.
The financial and business aspects of the acquisition
Netent has invested an initial enterprise value of GBP 200 million to acquire Red Tiger. It is also mentioned that Netent will invest a further GBP 23 million in the year 2022. This additional GBP 23 million will depend on Red Tiger's performance in the coming years.
The acquisition is financed by two major banks - Nordea and Danske Bank. The combination of Red Tiger and Netent has already released a game called Piggy Riches, which has gone on to become the top-selling game from Red Tiger ever and is churning money.
What does the future hold?
The future looks very promising for both Netent and Red Tiger as gaming brands. As the online gaming industry is getting more popular, these brands have more potential to create stunning and elaborate games and take them out to the players across the world.
The revenues generated by the companies integrated have already matched the forecasted values and are looking positive. For players who enjoy online games, this integration will definitely bring more entertainment and better offers. We will have to wait and see how quickly Netent rises to the top.