32Red.com Acquires Roxy Palace

Fans of Microgaming software will be pleased to hear that Roxy Palace Casino has been acquired by a group with a powerful reputation in the online gaming industry.

It was announced this week that 32Red, which is listed on the London Stock Exchange and operates many top brands, has acquired Roxy Palace Casino for a consideration of £8.4 million (£2 million in cash and the issuance of 10 million new shares).

The deal entails the acquisition rights to Roxy Palace Casino's entire database, comprising the details of over 230,000 registered players, as well as other assets.

The acquisition is considered an excellent one for 32Red.com, with Roxy Palace posting net revenues of £10.1 million last year. The group's gross profit was reportedly £3.4 million.

Smooth Integration of Microgaming Software

Roxy Palace Casino works off the same Microgaming casino platform as the one which powers 32Red Casino, the award winning gaming site operated by 32Red.

The chief executive officer of 32Red, Ed Ware said about the deal: "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 a smooth integration."

Ware said that the acquisition fits well with 32Red's regulated markets growth strategy and will allow the group to leverage the expertise that Roxy Palace Casino has built up over many years in international gaming markets "to the combined benefit of the enlarged business."

"To that end, we will continue to support the Roxy Palace brand along with maximizing synergies where appropriate," he added.

32Red Shares Up

With news that the group is acquiring Roxy Palace Casino, 32Red shares rose in London yesterday. Prices jumped 7.81% to 69p a share.

Ware told investors that the deal "ticks a lot of boxes for us."

"It is the right sort of size for a company of our shape, but also because the people that we are dealing, they are like-minded individuals, entrepreneurial, cleancut - so no skeletons."