32Red Buys Online Casino Roxy Palace. Shares Go UP
32Red, an online casino operator licensed to operate in the UK announced the acquisition of Roxy Palace for the amount of £8.4 million. Ed Ware, founder and chief executive of 32Red mentioned that he is very pleased with the closing of the deal and that the acquisition fits perfectly in the company’s growth strategy. Ware went on to mention that they have every intention of supporting the Roxy Palace brand and the fact that it also runs on Microgaming platform will make for a very smooth integration.
With this acquisition, 32Red have enriched their collection with a database of 230,000 registered users and more than 500 casino games that Roxy Palace featured. As a direct result of the announcing of the deal, 32Red Plc. shares went up 5% on Tuesday, trading at 67.15p and the day was closed with a 7.81% growth and share price at 69p. Roxy Palace had reported a net revenue for 2014 of £10.1 million, with £3.4 million gross profit. On the 23rd of July, 32Red announced a 50% increase in turnover in the first half of this year, which amounted to a sixth consecutive growth period. The lowest 32Red share price this year was 35.25, while the highest is now at 78.97 and expected to keep rising.
32Red was founded in 2000 and it operates an online casino site, a poker room, online bingo and a sports betting product. The company’s awards include: ‘Casino Operator of the Year’ at the 2011 EGR Awards, Got2Bet’s ‘Most Reputable Casino’ and numerous others from Casinomeister for the best casino operator. 32Red has licence in the UK, Gibraltar and will soon start running the Italian market, as well.