32Red to take over Roxy Palace

More consolidation in the UK online gambling industry.

The latest hook-up announcement came yesterday, with 32Red declaring they will be acquiring Roxy Palace for £8.4 million.

Consideration includes £2 million cash and the balance in shares. There is also mention in a press release on the matter that Roxy’s sellers, Hyperlink Media Limited and Applied Logics Limited  will continue to provide various services (online marketing services judging by the names) to 32Red/Roxy after the sale.

No mention of the UK’s new point of consumption tax being one of the motivations for the move, but it does seem to have spurred a rush of merger and acquisitions in the industry.

32 Red’s CEO Ed Ware said of the deal:

“We are delighted to have acquired Roxy Palace and we believe this is very beneficial for both our existing and new shareholders. 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.

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. To that end we will continue to support the Roxy Palace brand along with maximizing synergies where appropriate.”

Hopefully both brands keep their live games up and running.