14th Jul 2015 07:15
LONDON (Alliance News) - Online gaming operator 32Red PLC Tuesday said it has acquired Roxy Palace for GBP8.4 million in a cash and shares deal from Hyperlink Media Ltd and Applied Logics Ltd.
32Red said it will pay GBP2 million in cash and issue 10 million shares for the acquisition, and will continue to be provided with services from companies associated with the sellers following completion. The value of the shares being issued is 64 pence per share. Shares in 32Red were trading up 4.9% at 67.15 pence early Tuesday.
The deal is expected to be immediately earnings accretive before synergies, 32Red said.
Roxy Palace offers more than 500 online casino games including slots, blackjack, video poker and roulette. In 2014, it reported a net gaming revenue of GBP10.1 million and gross profit of GBP3.4 million. After fixed costs, estimated earnings before interest, tax, depreciation and amortisation totalled GBP1.6 million for the year.
"We are delighted to have acquired Roxy Palace and we believe this is very beneficial for both our existing and new shareholders. We have known and respected the business for many years, and share a number of common values. Like 32Red, Roxy Palace is also based on the microgaming platform which will aid in making for a smooth integration," Chief Executive Ed Ware said in a statement.
"This acquisition fits well with our regulated markets growth strategy and will allow us to leverage the expertise that the Roxy Palace team has built up over many years in international markets to the combined benefit of the enlarged business. To that end we will continue to support the Roxy Palace brand along with maximising synergies where appropriate," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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