Aristocrat makes bold £ 2.7bn offer for Playtech
Video game manufacturer listed in Australia Aristocratic hobbies is to buy the European gaming giant Playtech after making a cash offer valuing the company at Â£ 2.7 billion, a 58% premium on its closing price last week.
Playtech’s board of directors unanimously recommends that shareholders vote in favor of the deal in a year that has seen an unprecedented level of M&A activity. Aristocrat plans to fund the deal with a fundraiser of Â£ 864million, along with new debt and existing cash.
Aristocrat believes deal will deliver material stature in online gaming, generate revenue growth, reach a wider range of customers, and “operate and innovate” in the European market through Playtech Snaitech B2C operation.
Aristocrat CEO and Managing Director Trevor Croker explained, âThe proposed combination would bring together Aristocrat’s world-class gaming content and customer and regulatory relationships with the global online (B2B) RMG (real money gaming) platform and European B2C footprint of Playtech.
âThe combined group would offer a broad portfolio of end-to-end solutions for gaming customers around the world, along with seamless player experiences, underpinned by a common focus on responsible gameplay and innovation.
Additionally, the company will be uniquely positioned to create sustainable shareholder value by seizing opportunities in the rapidly growing global online RMG segment as they continue to open up, particularly in North America.
Croker said the offer reflects the strategic potential of the merger in the global industry which continues to migrate online. âAdding the talented Playtech team to 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 offer represents a valuation multiple of 11.4x Playtech’s adjusted EBITDA for the 12 months to June 30, 2021 and Aristocrat has already entered into deals with major shareholders for just over 20% of Playtech’s outstanding shares.
Mor Weizer, CEO of Playtech, said of the transaction, âThis transaction marks an exciting opportunity in the next stage of growth for Playtech and offers significant benefits to our stakeholders, including our customers, shareholders and our incredibly talented employees. This agreement has the potential to improve our distribution, our ability to build new and deeper relationships with partners, and strengthen our technological capabilities.
âThe combination of our two companies creates 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 offering across the board. games and sports betting. “
Brian Mattingley, President of Playtechadded, âOver the past few years, Playtech has successfully repositioned its world-leading gaming technology and operations, expanding into strategically important regulated markets and generating significant growth in online B2B revenue.
âWhile the company has made significant progress, particularly in the Americas, Aristocrat’s proposal offers an attractive opportunity for shareholders to accelerate the long-term value of Playtech.