Netent ( ) is one of the leading providers of igaming products in the world. It is known for games such as Gonzo's Quest, Starburst, Jackpot 6000, and Blood Suckers. Netent is in the online gambling business since the early 2000s, and has set new benchmarks in the industry.

Setting new milestones

Netent ( ) did not start as an online gambling player. In its earlier days, it was a product supplier to the brick and mortar casinos of Sweden. Netent changed its business model in the 2000s when it realized the growing importance of online and mobile gaming.

Over the past couple of decades, Netent has secured licenses from Alderney, Malta and several other countries to enter some of the most tightly controlled gambling markets. Netent was one of the first players that started mobile based games. Netent is listed on the Stockholm Stock Exchange.

Netent's acquisition of Red Tiger

In 2019, Netent announced that it was acquiring fellow game maker Red Tiger for 220 million GBP. This acquisition will take place in two stages. Initially, Netent will pay 197 million GBP to the promoters of the company, The balance money shall be paid later in 2022.

Red Tiger was founded in 2014 by a group of entrepreneurs behind Cayetano Gaming. The deal figure is 18 times Netent's earnings before interest, depreciation and taxes ( 18 million GBP). This acquisition was financed by Danske Bank and Nordea. Lazard was the financial adviser behind this acquisition.

Red Tiger Gaming

A relatively new player, Red Tiger is known for its innovative slots and presence in Asia. Ever since it was founded in 2014, Red Tiger has won several awards in various categories. Red Tiger won its first award in the B2B category in 2017 for innovation in slots production.

  • Red Tiger is headquartered in the Isle of Man
  • Its offices are in Bulgaria and Asia

In 2018, Red Tiger won the prestigious EGR Awards twice for excellence in game production. It repeated this performance in 2019 by winning EGR Awards twice again. Red Tiger is known for its Daily Drop Jackpots innovation that has paid several million dollars to players till now.

Red Tiger Partners and Games

In its short journey as a games provider, Red Tiger has done exceptionally well. Its game inventory includes table games and slots. Its games list includes-Reel Keeper, Multiplier Riches, Aztec Spins, 4 Squad, The Wild Hatter, Atlantis, Zeus Lightning, Robin Hood's Wild Forest, Wings of Ra, Leprechaun's Magic, etc.

Red Tiger also has a great list of casino operators. It includes names such as Betsson, Ladbrokes, Paddypower, William Hill, PokerStars, Betfair, GVC, Betvictor, Kindred, Casumo, Coral, Euro Casino, Mr. Green, Maria, Casiowinner, Rank Group,Playfortuna, LeoVegas, and many others. These players respect Red Tiger for its professionalism and quality.

What does the Netent Red Tiger merger mean for both of them?

Of course, after this merger, the Red Tiger promoters will be richer by 223 million GBP. But both the companies also stand to benefit from each other. Netent would be able to access the Asian markets courtesy Red Tiger. Netent is primarily focused on Europe.

Netent would also be able to grow its revenues significantly. In 2019, Netent;s revenues grew just by 3%. Investors should also see a significant improvement in the eps of the company. More business efficiency means better operating margins in the medium and short term.