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Aristocrat to buy Playtech for £2.7billion

Aristocrat to buy Playtech for £2.7billion

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Australian gaming giant Aristocrat Leisure is to acquire market leading technology specialist Playtech in a deal said to be worth £2.7bn (US$3.7bn). Playtech’s board has recommended that shareholders vote in favour of the deal. Aristocrat plans to fund the deal with a £864m equity raising, alongside new debt and existing cash. This is a seismic deal for the gaming industry, coming as companies rush to take advantage of a rapidly de-regulating US market.

Aristocrat believes the deal will deliver scale in online gaming, revenue growth and a broadened customer base in the Europe through Playtech’s Snaitech B2C operation. 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 real money gaming (RMG) platform and B2B 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.”

Mor Weizer, CEO of Playtech, said: “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.”

Aristocrat traces its roots back to the 1950s when it began life as a manufacturer of slot machines in the Roseberry suburb of Sydney, Australia. This is still huge, global business, but today, the company makes more than half of its revenue from selling betting and gaming technology and content to other businesses. Aristocrat is listed on the Australian Stock Exchange with a market capitalisation of A$30 bn (£16bn/US$22.5) and has 6,500 employees in 80 countries. Playtech, founded in 1999, builds white label gambling technology but has a significant consumer-facing business through its Italian division Snaitech, operating betting shops and online gambling websites.

Australian gaming giant Aristocrat Leisure is to acquire market leading technology specialist Playtech in a deal said to be worth £2.7bn (US$3.7bn). Playtech’s board has recommended that shareholders vote in favour of the deal. Aristocrat plans to fund the deal with a £864m equity raising, alongside new debt and existing cash. This is a seismic deal for the gaming industry, coming as companies rush to take advantage of a rapidly de-regulating US market.

Aristocrat believes the deal will deliver scale in online gaming, revenue growth and a broadened customer base in the Europe through Playtech’s Snaitech B2C operation. 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 real money gaming (RMG) platform and B2B 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.”

Mor Weizer, CEO of Playtech, said: “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.”

Aristocrat traces its roots back to the 1950s when it began life as a manufacturer of slot machines in the Roseberry suburb of Sydney, Australia. This is still huge, global business, but today, the company makes more than half of its revenue from selling betting and gaming technology and content to other businesses. Aristocrat is listed on the Australian Stock Exchange with a market capitalisation of A$30 bn (£16bn/US$22.5) and has 6,500 employees in 80 countries. Playtech, founded in 1999, builds white label gambling technology but has a significant consumer-facing business through its Italian division Snaitech, operating betting shops and online gambling websites.