NetEnt has recently announced that it will be integrating with Red Tiger completely to increase efficiency and revise the development factors.
NetEnt is further expanding its integration with Red Tiger. It’s for the betterment of the game development and cutting the cost at the same time. This merger will result in reducing up to 120 employees in Stockholm.
If you don’t know already, NetEnt is one of the leading software providers in the online casino industry. It has been providing the customers with spectacular casino games for quite some time now.
Red Tiger, on the other hand, is an independent game developer. It has created some pretty amazing games like Wild Spartans, Dragon’s Luck, God of Wealth, etc. Earlier in 2019, Red Tiger was acquired by NetEnt.
NetEnt has constantly stated its willingness to integrate even more with Red Tiger. The initial acquisition resulted in infinite possibilities in terms of competitiveness and efficiency. Now, NetEnt is looking forward to a total integration to even increase the economical advantages.
The merger is totally in compliance with NetEnt’s initial strategic plans to develop all aspects of the company. The integration will save the company almost SEK 150 million, only in terms of the cash-flow. It will start taking place in the middle of 2020. The estimated increase in cash-flow is about SEK 250 million every year which is a mere SEK 150 million in the past.
The overhauling of the brand will cost significant money as well. The amount is estimated at SEK 25 million. It’s accounted for as a non-recurring item which will affect the operating profit in the first quarter of 2020.
According to Therese Hillman, The Group CEO of NetEnt, “We are not entering the next phase of the integration with Red Tiger, whose sellers are also becoming shareholders of NetEnt.” He also said that the integration will unlock the full capability of both brands. He looks forward to work hand in hand to become the leading service provider in the industry.
As for the Covid-19 outbreak happening around the world, the future of the industry is not yet predictable. According to NetEnt, the virus hasn’t affected the revenue. The expected revenue for the first quarter of 2020 is approximately SEK 490-500 million.