Game Maker Aristocrat Acquires Playtech!
Australian slots maker Aristocrat has agreed to acquire Playtech in an enterprise value basis of approximately £2,7 billion (€3,2 billion/$3,7 billion).
Aristocrat agree terms on £2,7 billion Playtech acquisition
The games maker is paying 680p for each Playtech share in an all-cash deal, a premium of 58,4% over Playtech's closing price of 429,2p per share on October 15, the last trading day prior to the announcement of the acquisition.
This is also, according to Aristocrat, a 66,0% premium to the volume weighted average closing price per Playtech share of 409,7 pence over the three-month period ended October 15, and a 55,0% premium to the weighted average closing price of 438,8p over the last 12 months.
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Aristocrat said the combination would provide the company with "material size" in both the igaming and online sports betting segments and deliver mid-term revenue and profit growth, particularly in the North American online real-money gaming market.
The combined company will have employees in 24 countries and territories, including seven content studios worldwide, and will operate in 30 regulated jurisdictions with 170 global licensees.
The deal, Aristocrat said, would also allow Playtech's distribution, technology and content to serve a broader range of customer and player needs, while Playtech's Snaitech business is B2C -Presence in several European markets.
The acquisition is expected to deliver attractive financial returns and provide a low to mid single digit increase in the share price of the combined company before synergies and mid to high single digits once synergies are achieved.
The acquisition is subject to a number of regulatory approvals and closing conditions, including approval by at least 75% of Playtech's stockholders. It is intended that Playtech's board of directors will recommend approval of the deal.
Both companies have received irrevocable commitments or letters of intent in respect of a total of 63.412.083 Playtech shares, collectively representing approximately 20,70% of Playtech's issued common stock outstanding.
The deal is expected to close in the second quarter of 2022.
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Trevor Croker, CEO of Aristocrat, said the deal will strengthen his company's "world-class" gaming content, customer and regulatory relationships with Playtech's "industry-leading" online gaming platform and European B2C pr combine essence.
The combined group, according to Croker, would therefore offer a broad portfolio of end-to-end solutions for gaming customers around the world.
"Additionally, the company will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online RMG segment that continues to open up, particularly in North America," he added added.
"The combination of Playtech's talented team with the established strengths and momentum of Aristocrat will create a true industry leader in the global online RMG space, particularly in terms of our B2B capabilities."
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Mor Weizer, CEO of Playtech, described the merger as "an exciting opportunity in the next phase of growth for Playtech" that would bring significant benefits to stakeholders.
"This deal has the potential to enhance our distribution, our ability to forge new and deeper relationships with partners, and strengthen our technology capabilities," he said. "The merger of our two companies creates one of the largest B2B gaming platforms in the world with the people, infrastructure and know-how to offer our customers a truly world-class offering across all aspects of gaming and sports betting."
Aristocrat intends to fund the acquisition through a combination of existing cash available to the Group, new credit facilities and an equity offering of Aristocrat common stock.
The deal comes after Playtech also agreed last month to sell Finalto - the supplier's financial trading division - to Gopher Investments for $250 million after shareholders rejected a board-approved bid by Barinboim Group last month had.
Playtech originally put Finalto up for sale in March to focus on its core gaming business, although since 2019 it had been considering plans to sell it amid poor performance
In August, Aristocrat announced it would expand its digital games business after agreeing to acquire mobile gaming studios Futureplay and Playsoft, while the group also made plans to establish a new development facility tte announced in Finland.
The three studios will become part of the Aristocrat Digital division, which Aristocrat said would support its development efforts in the casual gaming and social casino markets.
Source:IGB
