32Red gambling operator took over Malta-Licensed Roxy Palace casino in a deal worth a total of £8.4m. 32Red will pay £2m in cash and will issue 10m new shares (costing 65p per piece) to compensate the new shareholders. The new shares will be locked-in for a period of 12 months.
Roxy Palace was founded in 2002 and operates mainly on the UK market, although they have a presence on the Swedish and the Netherlandish markets, too. Both Roxy and 32 red utilize the top-notch Microgaming software platform, providing more than 500 fantastic casino games and some of the most popular slot titles, such as Immortal Romance and Thunderstruck.
Roxy is owned by Hyperlink Media Ltd. and Applied Logics Ltd. They claims to have a large player database of over 200,000 active users. According to their earning reports, in 2014 they have generated net revenue of £10.1m. Currently the 32Red aims to maintain the newly-acquired rival and expects to increase the synergies. 32Red’s chief executive Ed Ware expects that the acquisition to increase the company’s earnings significantly.
32Red CEO commented the acquisition of Roxy Palace as a very smart move, which will be very beneficial for both their existing and future partners. Ware also highlighted that this deal perfectly fits their current growth strategy. Plus, considering the fact that both operators are powered by Microgaming, the transformation will be pretty smoothly. Furthermore, another advantage for 32Red will be the opportunity to make use of Roxy Palace’s experience on the international markets.
As a result of the deal, financial analysts estimate £5.5m earnings for 32Red before taxes and interests, instead of £5m. This will also reflect in their share prices and the analysts revised their target price from 90p per share to 120p.
32Red is a Gibraltar-based casino operator and is listed on the London Stock Exchange. The online casino offers over 500 exciting games, powered by Microgaming, including blackjack, poker, roulette, etc.