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Aristocrat Gaming Acquires Playtech With $2,9 Billion Offer
By Shane Addinall Oct 21, 2021 IndustryAristocrat Leisure Ltd bid a staggering $2,9 billion for the London-listed gaming company Playtech PLC. Both companies have stellar reputations in the casino industry and the promising partnership will stir innovation throughout the gambling world.Aristocrat Gaming has finalised an acquisition deal with Playtech and raised $674,2 million in equity funds, which will go towards the $2,9 billion cash deal.
Terms of the acquisition stipulate a purchase value of $9,35 per share and Playtech’s shareholders seem in favour of this agreement. The Australian-listed company intends to fund the deal with a total equity amount of $972 million.
Mor Weizer, Playtech’s CEO, commented on the transaction:
“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”.
Playtech has an established footprint in the American gaming industry and signed a multi-state agreement with Kindred Group’s Unibet Interactive in September 2021.
Playtech and Aristocrat
Playtech PLC is a European-based software provider in the online gaming industry and we know them as the pioneers of omnichannel gambling products. The highly talented team of developers are leaders in creating next-generation content and their responsible gambling product, Playtech Protect, boasts award-winning technology. The provider showed tremendous growth within their HY results, with their North American division booming at a 106% increase on the previous period.
Aristocrat Leisure Ltd is an Australian-based company, and it came to be in 1953. The gaming and slot machine provider develops state-of-the-art slot machines with their Clubmaster dating back to 1956. Innovation and play are at the heart of Aristocrat Gaming and they operate in over 90 countries. The powerhouse has launched many industry-shaping products.
Aristocrat CEO, Trevor Croker commented on the new partnership:
“Adding Playtech’s talented team with Aristocrat’s established strengths and momentum will create a true industry leader in the global online RMG space, particularly in terms of our B2B capabilities.”
Croker believes that as the gambling industry continues to migrate online, this deal presents the strategic potential for mergers in the sector.
Big Kahunas Agree
The equity offer by Aristocrat received firm support from their institutional shareholders, as they offered them entitlement at AUD41.85 (US$31.32) per ordinary share. This equity raising will help with the funding for the acquisition as Aristocrat plans to pay partly with existing cash, equity, and new debt. This increases the company’s shares by approximately 31.1 million.
One of Playtech’s largest shareholders, Jason Ader, commented on his delight about the deal. As one of the gaming developer’s largest shareholders, he stands to gain a lot from the agreement. He congratulated Brian Mattingley, the group’s new chair, for his ability to address the shareholders’ concerns and repositioning Playtech in this manner.
“This deal represents a compelling alignment of strategic interests and validates our long-held view of the value of Playtech.”
Playtech’s board aims to vote unanimously in favour of the deal they view as reasonable. The provider’s CEO and Chairman both agree on the advantages of the merger. With Playtech’s B2C sportsbook company, Snaitech, Aristocrat will grow in the European online gambling sector and establish a broader range of customers.
The next stage of the entitlement offer includes the retail component, which will open on 25 October and close on 8 November. Aristocrat expects to raise $303 million during this phase. With regulatory and financial processes that need to be completed, the agreement should be to be finalised in Q2 of 2022.
A Bright Future
The online gambling industry is very excited to see what this partnership will bring to the table. Aristocrat Gaming and Playtech have already made huge contributions to both land-based and online casinos. We can only imagine what they will accomplish together.
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