The offer values London-listed Playtech at 680 pence (US$9.35) per share, a premium of about 58% to the company’s last closing price on October 15, Aristocrat said in a statement Monday. Shares in Playtech rose as much as 57% on Monday to 675 pence.
The Australian slot machine manufacturer said the combination would provide the business with “material scale” in both the iGaming and online sports betting segments, delivering medium-term revenue and earnings growth, particularly in the North America online real-money gambling market.
“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,” Aristocrat Chief Executive Officer Trevor Croker said.
“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,” he added.
Playtech CEO Mor Weizer described the combination as “an exciting opportunity in the next stage of growth for Playtech,” that would deliver significant benefits to stakeholders.
“This deal has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners and bolsters our technological capabilities,” he explained. “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,” Weizer added.
The deal would mark the latest in a long list of tie-ups aimed at staking out an early advantage in online gambling, which was already deregulating across the U.S. before new the number of new players exploded during pandemic lockdowns.
Aristocrat expects Playtech’s Italy-based omni-channel gambling operator Snaitech to open up new European markets at the same time as business in North America continues to boom, the company said.
The acquisition is expected to deliver attractive financial returns, boosting the combined business’ share price in the low- to mid-single digit range before synergies, then mid- to high-single digits once synergies have been achieved.
The combined business will employ staff across 24 countries and territories, including seven content studios globally, and operate in 30 regulated jurisdictions with 170 global licensees.
The acquisition remains subject to a number of regulatory approvals and closing conditions, including approval from a minimum of 75% of Playtech shareholders. The deal is expected to close during the second quarter of 2022.
Source: GMB
