Investment

Lady Luck Games to acquire development studio ReelNRG in €800,000 deal

By Conor Mulheir - 8 Apr, 2022

Slot development studio Lady Luck Games (trading as LL Luck Games AB) has signed a letter of intent to acquire London-based games studio ReelNRG.

ReelNRG has companies and operations in the UK and Malta, and was founded in 2016 by Calvin Kent and Harsharan Gill.

Among the firm’s co-owners are several investors with extensive knowledge of the iGaming sector including Cherry, Yggdrasil and Coolbet investor the Klein Group.

At present, ReelNRG’s portfolio consists of 46 games and more than 30 integrations. The business currently has a staff of nine, including eight developers based in India.

Following the acquisition, ReelNRG will continue to operate independently, however Lady Luck said it sees great synergies for the future in the form of cross-selling, cost optimisation and the opportunity to share technologies and licences.

The parties have agreed that the purchase price will consist of 2.5m newly issued shares in Lady Luck through a set-off issue, carried out at a price of SEK3.30 per share. This gives a total purchase price of SEK8.3m, around €802,269.

Lady Luck CEO Mads V. Jørgensen: “This is a big step for LL Lucky Games, which further consolidates our position as a truly independent gaming studio who focus on the regulated markets.”

After issuing shares to ReelNRG, the total number of outstanding shares in Lady Luck will be around 51.4m. The transaction is expected to complete this month, following the customary documentation process.

“Through the acquisition of ReelNRG, we secure important customer integrations and licenses for the LL portfolio,” said Mads V. Jørgensen, CEO of LL Lucky Games.

“As a merged company, we now operate over 100 games and will be able to derive great mutual benefits from both the commercial synergies via cross-selling, but also on the cost side. This is a big step for LL Lucky Games, which further consolidates our position as a truly independent gaming studio who focus on the regulated markets.

“To operate via own licenses secures larger revenue shares and market reach. We look forward to welcoming Calvin and his team together with Klein Group and the other shareholders in ReelNRG.”

Calvin Kent, CEO of ReelNRG, added: “To get LL Lucky Games as the new owner of ReelNRG marks an important new start for us. The additional support from LL Lucky Games will bring us back stronger than ever and enable an improved delivery of our entertainment packages to our clients and their customers.

“Our new server infrastructure has now been completed and optimized and is ready to scale. Our team and our shareholders are super motivated to continue running the business as part of LL Lucky Games.”