32Red Plc, an online gaming operator, saw an initial five percent bump in its stock after announcing it had purchased the remote online gaming business Roxy Palace for ?8.4 million.
The deal is for ?2 million in cash and the issuance of 10 million new Ordinary Shares. 32Red said it has purchased the customer database, intellectual property rights and certain other assets via the acquisition of the entire issued share capital of Eucalyptus Investment Limited, a unit of Hyperlink Media Limited and Applied Logics Limited.
Roxy Palace offers more than 500 online casino games including slots, blackjack, video poker and roulette and has a database containing 230,000 registered players.
“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,” said Ed Ware, CEO of 32Red Plc in a press statement. “To that end we will continue to support the Roxy Palace brand along with maximizing synergies where appropriate.”
