32Red CEO Ed Ware

32Red acquires Roxy Palace for £8.2 million cash & shares

32Red CEO Ed Ware
32Red CEO Ed Ware

The igaming sector reports another corporate acquisition as Gibraltar operator 32Red confirms that it has acquired online casino Roxy Palace for £8.2 million in a cash and shares deals from Hyperlink Media Ltd and Applied Logics Ltd.

32Red governance confirmed that it would pay £2 million cash for the acquisition of Roxy Palace operations, with a further 10 million shares issued at 64p share.

The Roxy Palace acquisition is expected to be immediately earnings effective, furthermore both operators have common synergies as they utilise Microgaming software for their online casino services.

Following a strong 2014, which recorded a fifth year of consecutive growth, 32Red CEO Ed Ware had commented that the operator would explore potential acquisitions to strengthen its services and market position.

Roxy Palace, one of the oldest online casino operators offers more than 500 online casino titles. In 2014 the operator recorded net gaming revenues of £10.1 combines with earnings of £1.6 million

Commenting on the acquisition 32Red CEO Ed Ware said

“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,”

“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,”

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