NetEnt has announced it is fully integrating the Red Tiger brand into its business, to increase efficiency and strengthen development.
The supplier acquired slots developer Red Tiger in September 2019 in an all-cash deal with an initial value of £197m ($226.9m).
With NetEnt stating the acquisition has exceeded expectations, a restructuring will speed up full integration and increase efficiency, saving a significant amount, but will mean 120 full-time roles will be cut from offices in Stockholm and Malta.
NetEnt estimates restructuring will result in annual savings of around SEK 150m ($13.6m) on a cash flow basis, which will begin in the second part of 2020.
Potential synergies from the acquisition should also rise to around SEK 250m annually, up from SEK 150m.
Cost of the full implementation will amount to approximately SEK 25m; this will have an impact on operating profit for Q1 2020.
Group CEO of NetEnt Therese Hillman said: “We are now entering the next phase of the integration with Red Tiger, whose sellers are also becoming shareholders of NetEnt.
“The integration will unleash the full potential of our shared capabilities, crease significant efficiency gains in games development and strengthen our position as the market leader in online casino.”
