Netent and Red Tiger merger- Broad details
Per an article published in topnetent-casinos , Netent and Red Tiger have agreed to merge their operations. This merger would be completed in 2022 but would improve the Earning Per Share figures for Netent in 2020. The Red Tiger acquisition would cost Netent at least 200 million GBP.
About Netent gaming
Netent is in igaming business for more than 20 years. This company has more than 1000 employees and its offices are spread all over in Europe, Malta, Gibraltar, and the United States. The head office of Netent is in Stockholm, Sweden. Netent uses jlmscripts in all its games.
- Netent conducted more than 58 billion igaming transactions in 2019.
In 2019, sales of Netent grew at 0.6% while the operating margin of the company expanded by more than 20%. On Wednesday, 22nd April 2020, Netent will share its figures for the 2020 first quarter with the media and investors at 7.30 am Central European Time.
About Red Tiger Gaming
Red Tiger Gaming was founded in 2014 by a group of online gambling veterans who wanted to re-write the rules of igaming. This company, now a part of Netent, has received licences from gambling regulatory authorities in Malta, Alderney, Gibraltar, and the United Kingdom.
Red Tiger has partnered with some of the most well known online casinos in the world. Its partner list includes William Hill, Paddypower, PokerStars, Gig, Coral, Comeon, Casumo, Betvictor, and GVC. Red Tiger has been covered extensively by several online casino news websites like Gambling.com, and AboutSlots.
Red Tiger Gaming details
This igaming products provider has won several awards in the past because of its commitment to high standards and quality. Its award list includes The EGR Award in June 2018, GIA Casino Supplier of the Year Award in February 2018, and the WhichBingo Award in 2018.
Red Tiger has been a favourite among its partners and players because of its excellent game repository. Players have loved its iconic games such as Dragon's Fire Megaways, Wild Elements, Wild Cats Multiline, etc. Red Tiger is known for its great production values, attention to detail and animation.
Impact of Red Tiger-Netent merger
The acquisition of Red Tiger by Netent is expected to bring synergy in the operations of both the two entities. Production costs are likely to be optimized and there will be a greater sales efficiency. This merger is likely to drive up the Earning Per Share of Netent significantly.
- The workforce of the combined entity will be reduced by 120 people.
The impact of this merger would be felt in other areas as well. Analysts expect that Netent would save 150 million SEK from the second half of 2020. What this implies that the net effect of this merger would translate into an annual savings of 250 million SEK.
Financial effects of this merger
Analysts also say that Netent would be able to reduce its debt burden by 100 million SEK. Since the Red Tiger acquisition was announced early by deploying the discounted net present value, the financial burden of the merged entity would go by 35 million SEK.
At present, it is difficult to forecast the impact of Covid-19 on the business of Netent. Until now, the company's operations haven't been affected by this pandemic, and analysts expect the company's turnover in the range of 490-500 million SEK for the first quarter of 2020.