NetEnt has reached an agreement to acquire online slot supplier Red Tiger Gaming in an all-cash deal worth up to £223m.

Red Tiger

The transaction, to be completed imminently, comprises an initial £200m followed by a possible additional amount up to a maximum of £23m in 2022 on an earn-out basis, subject to Red Tiger’s financial performance over the coming two years.

Established in 2014, Red Tiger is a leading online supplier of casino games and software renowned for its daily jackpot games. The company has approximately 170 employees with operations in Malta, Isle of Man and Bulgaria.

Red Tiger’s EBITDA is expected to reach £18m for the full year 2019.

The acquisition of Red Tiger is intended to provide NetEnt with the opportunity to capitalise on its scalable technology to support future growth.

Therese Hillman, group CEO of NetEnt, said: “I am very pleased to welcome Red Tiger into the NetEnt Group. The acquisition combines two of the leading and most innovative companies in the online gaming industry. We look forward to working with Red Tiger’s fantastic team to enhance our combined global reach and to offer further value to operators and players. The transaction will provide significant revenue synergies across our markets worldwide.”

Gavin Hamilton, CEO of Red Tiger, said: “This is an exciting new stage of the Red Tiger story and we are delighted to become part of the NetEnt group. Accessing NetEnt’s unparalleled distribution network and geographic footprint will unlock new opportunities for Red Tiger and will further accelerate our growth. At Red Tiger we’ll remain focused as always on driving further innovation and we are looking forward to working with NetEnt on how to leverage our combined capabilities to create new products that wow our customers.”