NetEnt’s Chief Executive Officer, Therese Hillman, has provided in-depth commentary on her company’s purchase of Red Tiger Gaming – news that spread like wildfire out of the blue a few days ago.
She began her lengthy analysis by saying that this buy “fits NetEnt’s growth strategy perfectly” and that it will try to capitalize “on its scalable technology to support future growth” once the acquisition is closed, once Red Tiger’s performance is consolidated with third quarter results of new parent company.
A Young, Impressive Team
Hillman began her statement by saying:
“Red Tiger has been very successful since it has started. It has quickly established itself as one of the top suppliers in the online gaming market. We have been very impressed by them over the years.
What is appealing about Red Tiger is their very strong market presence in the UK , as well as in Northern Europe, and we think that they are a very good fit with our current strategy.”
She went on to talk about the decision of buying Red and remarked that their revenues come from a broad range of customers and they have a very large portfolio of games – an impressive feat for a young company. Reminding that they are licensed in UK, Malta, Gibraltar and Alderney as well as in Italy, Denmark and Sweden, they are also supplying the Swiss market and one of the online sites there.
A Big Portfolio is an Asset
NetEnt will pay £197 for shares of Red Tiger with the remaining sum to be paid by 2022, depending on the financial performance in coming years.
Hillman expects that there will be a “significant synergy” created, that should drive forward new innovation.
“Looking at their slot games, their table games and the other products that they have to offer, I would like to highlight that their slot games fit perfectly into our strategy with a growing portfolio that we can provide and offer into a number of different markets.
We are very impressed by the big portfolio that they have. They also have great table games and their is a demand for more table games, especially across the US which offers a new opportunity for us.
Red Tiger has strong jackpot products overall, they have SmartSpins, they have tournaments, and they have lots of interesting tools that we find will be great for a combined product.”
Even NetEnt’s officials were surprised by the level of overlap between the two companies, especially in the customers segment. Although the network of customers shared is not as large as predicted, it still presents a number of opportunities for the developer.
Red Tiger’s Swiss Fame
Red was among the first operators to enter the newly regulated online gaming market of Switzerland…
…and in mid-August they went live with Grand Casino Baden’s site jackpots.ch. Powered by the Gamanza platform, it will initially gain 19 games by this provider, such as Dragon’s Fire, Mystery Reels and Pirate’s Plenty.
Online casino leader, Marcel Tobler, has said that his casino is delighted to have Red’s games first in Switzerland. He added that these are exciting times for everyone in the market and that having an internationally renowned and commercially proven developer in their library is a big boost.
Red Tiger’s Chris Looney added:
“We’re very pleased to launch with Grand Casino Baden and are excited about introducing not only new players but a new country to our titles. Red Tiger is always looking to enter regulated markets such as Switzerland, and we’re looking forward to building a strong partnership with Grand Casino Baden and their platform provider Gamanza.”
“Hillman: Red Tiger ‘a very good fit’ with NetEnt’s growth strategy”, casinobeats.com, September 6, 2019.