Last week, New Zealand game developer NetEnt announced that they have bought up their rival named Red Tiger Gaming. The acquisition will cost NetEnt a whopping £ 200 million in cash and they will also pay an additional £ 23 million to Red Tiger Gaming in 2022.

Thanks to the acquisition, NetEnt will now be able to use the exclusive jackpot product that Red Tiger Gaming has: the Daily Drop Jackpot Network which is linked to all their released jackpot games. To date, it has paid out just over £ 2.5 million since its launch in april this year.

NetEnt also said in a press release last week that the acquisition was fully in line with their vision of creating the gaming of the future which Red Tiger Gaming has certainly managed to do with their innovative games with built-in Jackpot features.

Therese Hillman, head of NetEnt, has said that they welcome Red Tiger Gaming to their family of companies and that this will now combine the most innovative and clearly the two best bookmakers in the gaming industry right now.

Shares rise in connection with NetEnt's acquisition of Red Tiger Gaming

As NetEnt acquires Red Tiger Gaming, this has led to the company's shares rising from NZD 25.60 up to NZD 33.00 from Wednesday to the last day of last week. One financial expert put it this way, " as you can see from the stock price, it's gone up a whopping 30% in just one week. It had been at record lows for five consecutive years. It has made a very good recovery from its very low stock price.”

Other experts such as investors have seen the potential with Red Tiger having market shares in both Asia and the UK, which is in line with what NetEnt wants to expand into. Red Tiger also has a strong presence in New Zealand countries including New Zealand and expects to have a better presence in the US thanks to more states legalizing online gambling.

NetEnt has had a tough growth in the first two quarters of this year but now it has reversed since their acquisition of Red Tiger Gaming tells a financial expert. Possibly things will go much better for NetEnt in the last quarter of this year. In other words, it can be a good time to invest in shares in NetEnt and then see them rise as the game provider makes more acquisitions and signs more gaming agreements.

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