Aristocrat Leisure to buy Playtech in $ 3.7 billion gaming deal


Australian slots kingpin Aristocrat Leisure has made a strategic giant leap in the online gaming and sports betting industry after announcing the acquisition of Playtech for $ 3.7 billion. [Image: Shutterstock.com]

The largest supplier in the world

Australian slot machine maker Aristocrat Leisure Ltd. announced the acquisition of AU $ 5 billion (US $ 3.7 billion) of Britain’s Playtech Plc, the world’s largest provider of online gaming and sports betting software.

Australia’s leading online brokerage firm CommSec took to Twitter on October 18 to share the news of Aristocrat’s acquisition of Playtech, citing the Australian gaming giant saying the deal “will speed up [its] growth strategy.

The purchase will allow Aristocrat to enter new areas of growth, such as sports betting and online gaming. According to an Aristocrat statement released on October 18, Playtech shareholders are offered 680p (US $ 9.35) per share, a 58% premium over the company’s closing price on Friday. Playtech directors who own shares in the London-listed company have “irrevocably committed” to vote in favor of the takeover bid, the statement added.

Aristocrat said he will raise A $ 1.3 billion (US $ 964.21 million) in equity to help fund the acquisition, as well as new debt and existing liquidity.

The company added that the deal will create one of the largest business-to-business platform providers in the global gaming industry.

Aristocrat ready for major growth

Aristocrat CEO Trevor Croker said the acquisition would offer customers worldwide a broad portfolio of “end-to-end solutions”. […] as well as seamless player experiences, underpinned by a common focus on responsible gameplay and innovation.

seize opportunities in the rapidly growing global real money online gaming segment

Croker added that the transaction will allow the company to seize opportunities in the rapidly growing global real money online gaming segment, “particularly in North America.”

According to the Australian Broadcasting Corporation (ABC), the Aristocrat transaction was part of a “deal-takeover frenzy” that boosted the Australian stock market. The ABC said Australia’s All Ordinaries index “rose a fifth of a percent to 7,690.” Shares of Playtech, meanwhile, rose 57% on Oct. 18 to 675p (US $ 9.28).

In recent years, Aristocrat has expanded its digital operations, becoming a global leader in the social casino, mainstream gaming, and role-playing (RPG) markets. In an online interview with Fantini Research last year, Croker spoke about his company’s ambitions for the sports betting market, saying, “We have the track record, and we also intend. […] either to build or to buy.

Monday’s buyout, however, is the biggest statement of intent to date of Aristocrat’s grand ambitions in the sports betting and online gaming market.

Make the headlines in the United States

Following Monday’s deal, Aristocrat said he expected Snaitech – the Italy-based omnichannel gambling operator of Playtech – to open up new markets in Europe while its business in the United States. United States continues to prosper.

Aristocrat has made headlines for the past year in the United States, both with Aristocrat Gaming and its Las Vegas-based subsidiary Aristocrat Technologies.

In May 2021, Aristocrat Gaming signed an agreement with Churchill Downs Incorporated (CDI) to supply historic racing machines (HRMs) to CDI’s facilities in Kentucky.

While HRMs look and function like slot machines, the way they determine the outcome of the spins is totally different. Instead of using an algorithm to randomize the outcome of the spin, a historical horse race is instead anonymized. HRMs are also pari-mutuels, with bets being pooled and divided among the winners.

Last year, the Las Vegas Raiders and the NFL’s Allegiant Stadium named Aristocrat Technologies as their official partner. The deal gave Aristocrat the signaling rights to the Raiders’ “Death Star” stadium in Vegas, and included the ability to create Raider-branded Aristocrat slots in the future.