32Red confirms acquisition of Roxy Palace
32Red has completed the acquisition of remote online gaming business Roxy Palace for a total consideration of £8.4 million (€11.8 million/$13 million).
The deal comprises £2 million in cash and the issuance of 10 million new ordinary shares.
32Red will take ownership of the customer database, intellectual property rights and certain other assets used in connection with the business via the acquisition of the entire issued share capital of Eucalyptus Investment, a wholly-owned subsidiary of Hyperlink Media Limited and Applied Logics.
Founded in 2002, Roxy Palace offers more than 500 online casino games and benefits from a database containing approximately 230,000 registered players.
Like 32Red, Roxy operates on the Microgaming platform and posted net revenues of £10.1 million in the 12 months through to the end of December 2014, while gross profit reached £3.4 million.
Ed Ware, chief executive officer 32Red, said: “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.
“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.”
32Red also confirmed that it will release its half-year trading update on July 22.
Related article: 32Red revenue boosted by marketing operations