Gaming technology firm Playtech looks set to be taken over after the Australian gaming manufacturer Aristocrat made a bid worth £2.7bn for the company.
The holder of multiple contracts with lotteries around Europe, Playtech appears likely to be sold, with the board of directors reportedly encouraging shareholders to vote in favour of the deal.
Aristocrat said the deal will provide material scale in online gaming, provide a jump in revenue streams as well as push its growth in the European market, utilising Playtech’s brand and contracts in Europe.
Aristocrat CEO and Managing Director Trevor Croker explained: “The proposed combination would bring together Aristocrat’s world-class gaming content and customer and regulatory relationships with Playtech’s industry-leading global online RMG platform and European B2C footprint.
“The combined group would offer a broad portfolio of end-to-end solutions for gaming customers around the world, as well as seamless player experiences, underpinned by a shared focus on responsible gameplay and innovation.
“Additionally, 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.”
The offer is more than 11 times Playtech’s annual EBITDA in its latest set of published financial accounts. Aristocrat has already made deals with major shareholders for just over 20 per cent of Playtech’s outstanding shares.
The gaming tech firm has lottery contracts across Europe and notably has dealings with Svenska Spel, Danske Spil and IGT.
Mor Weizer, CEO of Playtech, added: “This transaction marks an exciting opportunity in the next stage of growth for Playtech, and delivers significant benefits to our stakeholders, including our customers, our shareholders and our incredibly talented people. 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.”