Anyone who has played slot games is likely to have heard of Playtech. The company now look to be set to be sold to Australia’s Aristocrat Leisure. It’s a deal that is believed to be worth £2.1 billion.
News of the upcoming deal saw the shares of Playtech (who are listed on the FTSE 250) go up nearly 60 per cent. This came after news broke that Aristocrat had agreed to buy Playtech in a cash offer that is worth 680p per share. This is a premium of approximately 58.4 per cent compared to the closing price on October 15 of 429.2p.
The Playtech board approve of the acquisition by Aristocrat. It was in 1999 that Playtech was founded by Israeli Teddy Sagi. They have become one of the best software designers and have a large online presence. This includes poker rooms, casinos, sports betting sites and mobile gaming.
Aristocrat have had success all around the world with its premium gaming content and technology. The company has become one of the top digital game publishers in the world. Acquiring Playtech can only strengthen their position.
They have told their investors that this acquisition is consistent with their growth strategy. It will “create one of the largest business-to-business platform providers in the global gaming industry.”
One of the key reasons for the deal going ahead was the “real money gaming” experience and platform capabilities that Playtech possess. Aristocrat added that they expect the deal to deliver medium-term revenue and earnings growth. This is most particularly likely to occur in the expanding North American market.
The deal must be approved by 75 per cent of Playtech’s shareholders to be confirmed. Brian Mattingley is the chairman of Playtech. Speaking about the deal, he commented: “In recent years, Playtech has successfully repositioned its world leading gambling technology and operations, expanding in strategically important regulated markets and driving major online B2B revenue growth.
‘Whilst the business has made significant progress, most notably in the Americas, Aristocrat’s proposal provides an attractive opportunity for shareholders to accelerate Playtech’s longer-term value.’
Their CEO, Mor Weizer believes that the deal “marks an exciting opportunity in the next stage of Playtech.” It will in his opinion give “significant benefits” to their stakeholders.” The deal “has the potential to enhance our distribution,” he added.
It will also help them “build new and deeper relationships with partners,” while bolstering their technological capabilities. His conclusion is that the deal “builds one of the largest B2B gaming platforms in the world.”
