British Gambling Operator 32Red acquires Roxy Palace for £8.4 Million in a deal which sees the operator pay £2 Million in cash and the remainder with 10 million new ordinary shares.
Both 32Red Casino and Roxy Palace run on a Microgaming powered casino platform. Roxy Palace was founded in 2002 and is a UK and Netherlands facing online casino boasting over 500 casino games with over 230,000 players registered in their database. 32Red will now take control of the database and intellectual properties of the entire business of Eucalyptus Investment, a wholly-owned subsidiary of Hyperlink Media Limited and Applied Logics.
Speaking on behalf of the deal is 32Red’s Chief Executive Officer, Ed Ware, “Like 32Red, Roxy Palace is also based on the Microgaming platform, which will aid in making for a smooth integration.
“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.
32Red Casino is looking to expand it’s presence in regulated markets and by acquiring Roxy Palace, they will look to maximize the synergies of the enlarged business where and when appropriate.
Roxy Palace posted net revenues of £10.1 million and gross profits reaching £3.4 million in the 12 months leading up to December 31, 2014. 32Red has announced after this news that they will post their trading update for the first half of 2015 on July 22nd, 2015. In 2014, the company posted revenue of £32.1 million and EBITDA of £6 million.