NetEnt previously outlined its determination to become a giant in the world of casinos by acquiring Red Tiger Gaming in September 2019. This acquisition has surpassed expectations and provides tremendous prospective synergies, improved effectiveness, as well as economies of scale. Restructuring is now being executed as seen at https://www.topnetent-casinos.net to fasten the full acquisition of Red Tiger by NetEnt. What this means is that various functions will be relocated and over a hundred and twenty positions in Malta and Stockholm will become redundant.
It is essential to note that the measures taken by NetEnt to acquire their competitor are in line with their objectives to boost all areas of the business continually. With this, NetEnt increases its competitiveness and becomes a force to reckon with. According to mongold1.com , the acquisition is anticipated to result in yearly savings of about 14 million euros on a cashflow basis, starting 2020’s second half. It means that the company is boosting its initial estimation of prospective synergies to around 23 million euros a year.
Red Tiger’s Volatile Growth
Started in 2014 and licensed in the Isle of Man, it is sure that Red Tiger Gaming has been in the business for less than ten years. Still, this aspect did not deter NetEnt from spending almost 200 million euros to acquire the company. Over the past couple of years before the integration, Red Tiger Gaming was actually one of the fastest casino software developer. Unsurprisingly, in 2019, the company announced revenues worth around 18 million euros. This amount ranked it as one of the best-performing developer that year.
With this type of fantastic revenue performance for a casino software developer started less than a decade ago, it is not a wonder that NetEnt decided to acquire the firm. Red Tiger’s incredible growth means that it’s probable for NetEnt to profit from the acquisition more by bringing the company’s resources onboard. Under the acquisition terms, NetEnt agreed to pay 23 million euros as earn-out, and it needs to be fully paid by 2022. The financial performances of Red Tiger over 2020 and 2021 determined this figure.
The Need to Dominate
The growth of casino software developers is driven by the casino games they offer. NetEnt, for instance, boasts more than 500 table games and slot machines. Some of the slot games from NetEnt are seen as some of the best in the industry. Of course, other software providers only copy what NetEnt offers. Red Tiger boasts more than 200 exclusive games. These games include Dragon’s Fire Mystery, Reel Megaways, Battle for Gold, among many others. Notably, the games enjoy a state-of-the-art casino invention.
Some of the inventions that these games come with include high RTP rates, realistic graphics, bonus rounds, auto-play, as well as mobile adaptability. The daily jackpots by Red Tiger are perhaps the developer’s signature invention, and one of the primary reasons for the business’s exponential growth. This jackpot is made in such a way that players can win the daily cash prizes irrespective of the casinos where they use. Yes, this means that it will be the case when NetEnt acquires the company entirely.