London-listed, popular internet betting firm 32Red plc recently announced that they have acquired the online gaming business of Malta and UK licensed Roxy Palace Casino for an amount of $8.4 million.
The acquisition will see 32Red Casino having ownership of Roxy Palace’s customer database of 230,000 registered players as well as over 500 online casino games operating on the Microgaming platform.
The deal between the parties will be settled through the issuance of 10 million new Ordinary Shares of 32Red with a 12 month lock-in and an amount of £2 million in cash which is payable between completion and December 2016 and is due to be immediately earnings accretive before synergies.
Upon completion of the deal the current owners of Roxy Palace Casino will continue to provide 32Red’s new venture with strategic services.
It has been revealed that Roxy Palace Casino generated net gaming revenue of £10.1 million during last year with a gross profit of £3.4 million and EBITDA of £1.6 million.
According to Ed Ware, the Chief Executive at 32Red Casino, they are absolutely delighted to have acquired Roxy Palace and they believe that this is very beneficial for both their existing as well as new shareholders. He added that they have known and respected the business for many years and share a number of common values and that like 32Red, Roxy Palace is also based on the Microgaming platform which will assist them in making for a smooth integration.
Ware also said that they will continue to support the Roxy Palace brand along with maximizing synergies where appropriate.
