Playtech Cyprus Ltd. (AIM:PTEC), which recently raised $156 million for new acquisitions, has bought Ash Gaming for ₤23 million.
Playtech, which develops software platforms for online betting and is controlled by Teddy Sagi, will pay ₤15.5 million immediately for Ash Gaming and a deferred payment of ₤7.5 million over the next three years. Ash Gaming is a leading developer of interactive gambling and betting games. "Globes" reported Playtech's interest in buying Ash last April.
This was Playtech's tenth acquiistion and the fourth since the start of 2011.
Citing its reasons for the acquisition Playtech said it was acquiring a recognized industry leader with more than 30 licensees. The company added that Ash's, "Strong revenue and EBITDA growth profile with accelerating run-rate; implies run-rate EBITDA multiple of 6.4 times based on pro forma annualized performance of the three months to 31 October 2011."
Playtech also said that Ash, "Enhances Playtech's wholly-owned content library and value chain economics; complements Playtech's technology leadership with additional premier content capability; and provides potential for revenue synergies, incremental opportunities and uplift in margins for casino/games platform as well as poker and bingo side games."
Playtech CEO Mor Weizer said, "We see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximize both revenue and earnings across the value chain. In newly regulated markets both in Europe and other territories such as Canada, Ash Gaming's content is set to gain considerable traction."
Playtech's share price rose 1% on the London Stock Exchange on Friday to ₤2.30.
Published by Globes, Israel business news - www.globes-online.com - on December 18, 2011
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