32Red Acquires Roxy Palace
Shares in online casino operator 32Red rose last week, after it announced the acquisition of online casino Roxy Palace, in a deal worth a total of CA$ 17.1 million. The popular online casino was first founded in 2002 and offers more than 500 online casino games, including favourites such as roulette, slots and video poker. Roxy Palace, who has produced a net gaming revenue of CA$ 20.5 million last year with a gross profit of CA$ 6.9 million, will hand over a customer database of over 230,000 registered members, as well as intellectual property rights and other assets used in connection with the business.
The acquisition is expected to be immediately earnings effective. Both operators have common synergies as they utilise Microgaming software for their online casino services which should make for a smooth transition. Following a strong 2014, which recorded a fifth year of consecutive growth, 32Red CEO Ed Ware said that the operator would explore potential acquisitions to strengthen its services and market position.
He commented: "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," he added.
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