32Red acquires Roxy Palace

(ShareCast News) - Online gaming group 32Red has acquired online casino games specialist Roxy Palace in an £8.4m cash-and-shares deal.In a statement released on Tuesday, the AIM-listed company said it will pay £2m in cash and issue 10m shares for the deal, adding the selling firms Hyperlink Media and Applied Logics will continue to provide services to 32Red.The company said it expects Roxy Palace, which offers over 500 online casino games including slots, blackjack, video poker and roulette, to add to its earnings with immediate effect, having generated estimated earnings before interest, tax, depreciation and amortisation of £1.6m in 2014 on net gaming revenue of £10.1m and gross profit of £3.4m."We are delighted to have acquired Roxy Palace and we believe this is very beneficial for both our existing and new shareholders," said group chief executive Ed Ware."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."32Red shares were up 1.95% to 65.25p at 08:32 on Tuesday.