Playtech buys online betting software co

Israeli online gaming firm 888 is a customer of the company that was bought.

Teddy Sagi is continuing to develop the business of his online gaming solutions provider, Playtech Cyprus Ltd. (AIM:PTEC), through acquisitions. Playtech has acquired British open gaming platform developer Gaming Technology Solutions Ltd. (GTS) for €10.8 million. Subject to Gaming Technology's profits over the next two years, the acquisition price could reach a maximum of €21.6 million.

Playtech said that it will finance the initial amount from its own sources. The company had €67.8 million in cash at the end of September, and will therefore have no problem in financing the acquisition.

Gaming Technology Solutions' customers for its online gaming platform include bwin Interactive Entertainment AG (ATX: BWIN), bookmaker Victor Chandler International Ltd., and Israel's 888 Holding plc (LSE:888), the world's largest online casino operator. It will therefore be interesting to see how relations between 888 and Gaming Technology Solutions' will evolve following the takeover, especially since 888 CEO Gigi Levy is quoted on Gaming Technology Solutions' homepage as praising the company.

888 said in response, "If Gaming Technology Solutions gives us a good product and services at a good price, there's no reason not to continue collaborating with it."

Playtech's share fell 1.7% in London today to ₤4.09, giving a market cap of ₤982 million.

Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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