Net Entertainment’s First Acquisition Comes by Way of Red Tiger Gaming

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Net Entertainment’s First Acquisition Comes by Way of Red Tiger Gaming ( Click to Enlarge )

Red Tiger Gaming will now be owned by Net Entertainment after a purchase worth about £220 million. This is the first acquisition of its kind by NetEnt, which makes it very special since it’s clear they’re looking to take their business in yet another strong direction at this point to expand their high-quality portfolio even further.

Red Tiger Gaming Purchased by NetEnt

Net Entertainment has shown a lot of focus on strategy when it comes to how they handle their business and game distribution. However, they’ve recently made a move that few people saw coming with the purchase of another high-quality slot provider.

Red Tiger Gaming has been purchased by Net Entertainment in their first move of this kind.

While it comes at a hefty price tag, NetEnt clearly thought the purchase was worth it, and they’ll be looking to take full advantage of what Red Tiger Gaming has to offer in terms of their development team and portfolio for sure.

With that said, this move means we have to ask a number of questions, and that list includes looking at how Net Entertainment’s business strategy could have shifted right under our noses.

Details on the Deal

The first thing you need to know about this deal is that it’s for all of Red Tiger Gaming’s assets and not just their games portfolio. It came at a cost of about £220 million at the most. That’s split up between an immediate cash payment of £197 million followed by performance bonuses worth as much as an additional £23 million that can be paid out by 2022.

This move has Red Tiger Gaming join what they’re calling NetEnt group. Red Tiger has only been around since 2014, and in that time, they developed a tremendous reputation for putting together some seriously high-quality slots. This is right up NetEnt’s alley, so it’s not all that surprising that this purchase took place.

A Shift in Strategy

This purchase also marks something even more interesting than the deal itself in that it shows that Net Entertainment has a different component to their overall strategy than what many industry experts expected.

With this deal, it’s clear that they are looking to build out a sort of gaming platform of their own under the NetEnt group name.

Beforehand, it didn’t look like this was the case since they’d been around since the late 1990s (more than 20 years at this point) but hadn’t made any kind of purchase of other software properties. Their prior focus was on penetrating regulated markets with high-quality offerings and a tremendous reputation for staying within certain legal bounds even when they didn’t necessarily have to due to issues of jurisdiction.

Instead, we now have them buying up software companies that build high-quality slots, and that means we have no idea which developer they might go at next or if they have no plans for future acquisitions at this time. In short, it’s added an element to their business strategy that we hadn’t really accounted for previously, and now we have to think about the possibilities.

What Comes Next

For now, the only real thing we can count on is that Red Tiger Gaming’s titles will still be available for players as usual, and nothing will change in terms of game availability. That’s great for the players, and the portfolio is unlikely to be pulled or anything like that since they’ll still make NetEnt money, but there are some future implications.

If Net Entertainment starts buying up more developers, it could create yet another overall casino software package that operators want to use, and since it would be filled with high-quality titles, it’s something that both players and operators would definitely be interested in. That much is pure speculation at this point, but it’s very much the direction that they seem to be headed in.