Aristocrat to acquire Playtech for £2.7bn

The Australian slot machine manufacturer has agreed a deal to buy UK-based Playtech for around £2.7bn on an enterprise value basis.

UK.- The slots manufacturer Aristocrat has agreed to buy the software development company Playtech, paying 680 pence per Playtech share. The all-cash deal represents a 58.4 per cent premium on Playtech’s share pierce as of Friday (October 15 October).

Aristocrat said the merger of the businesses would grant it “material scale” in igaming and online sports betting and deliver medium-term revenue and earnings growth, especially in the US online real-money gambling market. It said the agreement will allow both companies’ distribution, technology and content to meet wider customer needs. 

The combined business will have seven content studios and will operate in 30 regulated jurisdictions with 170 licensees. The Playtech board is expected to recommend the deal, which will require regulatory approvals and the approval of 75 per cent of Playtech’s shareholders. Closure is expected in Q2 2022.

Aristocrat chief executive Trevor Croker said: “The business will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online RMG segment as they continue to open up, particularly in North America.

“Adding Playtech’s talented team with Aristocrat’s established strengths and momentum will create a true industry leader in the global online RMG space, particularly in terms of our B2B capabilities.”

Playtech CEO Mor Weizer said: “This deal has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners and bolsters our technological capabilities.

“The combination of our two companies builds one of the largest B2B gaming platforms in the world, with the people, infrastructure and expertise to provide our customers with a truly best-in-class offer across all areas of gaming and sports betting.”

Last month, Playtech agreed to sell its financial trading division Finalto to Gopher Investments for $250m. The deal came after shareholders rejected a bid from the Barinboim Group that had been approved by the board.

For the first half of the year, Playtech said results had met expectations thanks to the strong performance of Caliente and Snaitech’s online business.