LONDON, UK: Bidco (a wholly owned subsidiary of Aristocrat) will acquire the entire issued and to be issued ordinary share capital of Playtech Plc.
The Acquisition is to be effected by means of the Scheme of Arrangement under Part X of the Companies Act.
Under the terms of the acquisition, Playtech shareholders shall be entitled to receive 680 pence in cash for each Playtech share. The acquisition values the entire issued ordinary share capital of Playtech at approximately £2.1 billion on a fully diluted basis and values Playtech at approximately £2.7 billion on an enterprise value basis.
If on or prior to the Effective Date any dividend, distribution or other return of value is declared, made or paid or becomes payable by Playtech, the Acquisition Price shall be reduced accordingly. In such circumstances, Playtech Shareholders would be entitled to retain any such dividend, distribution or other return of value declared, made or paid.
Playtech is one of the leading online gambling software suppliers with proven expertise in developing software platforms and content for online, mobile and land-based gambling.
Aristocrat is a leading global supplier of premium gaming content and technology, and one of the world’s top publishers of digital games. Aristocrat’s acquisition of Playtech is consistent with its growth strategy and will create one of the largest business-to-business (B2B) platform providers in the global gaming industry.
Playtech’s Real Money Gaming (RMG) experience and proven platform capabilities with Aristocrat’s leading world-class land-based and social gaming content brings together two complementary leading gaming content and technology providers.
Aristocrat believes that a combination with Playtech will provide Aristocrat with material scale in the already large and growing iGaming and online sports betting segment, collectively referred to as “online RMG”.
This represents an estimated total addressable market of approximately US$70 billion (2020) globally. Online RMG offers new and complementary growth channels for Aristocrat’s land-based gaming business and content.
On a combined basis, acquisition allows Aristocrat’s and Playtech’s distribution, technology and content to meet a broader range of customer and player needs and deliver new and connected experiences, unlocking additional value across Aristocrat’s portfolio and deepening customer engagement.
Commenting on the Acquisition, Brian Mattingley, Chairman of Playtech, said: “In recent years, Playtech has successfully repositioned its world leading gambling technology and operations, expanding in strategically important regulated markets and driving major online B2B revenue growth. Whilst the business has made significant progress, most notably in the Americas, Aristocrat’s proposal provides an attractive opportunity for shareholders to accelerate Playtech’s longer-term value.”
Commenting on the Acquisition, 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.”
Commenting on the Acquisition, Trevor Croker, Chief Executive Officer of Aristocrat, said: “The proposed combination would bring together Aristocrat’s world-class gaming content, customer and regulatory relationships with Playtech’s industry-leading global online RMG platform (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.
The recommended offer is a full and fair value and reflects the strategic potential of the combination in a global gaming sector that continues to migrate online, as a result of technology and entrenched consumer-driven change.
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.
The proposed acquisition continues Aristocrat’s approach of investing in medium to long-term growth and we are extremely excited by the opportunities that this will bring for our shareholders, people, customers and players.”