Aristocrat to acquire Playtech for $ 3.7 billion to compete in the US online gaming market


Playtech shares rose 57% on Monday after the deal was closed. The offer values ​​Playtech at $ 9.35 per share, a premium of around 58% of the company’s last closing price on Friday. The combination of the two companies is expected to create one of the largest B2B platforms in the gaming industry. The Australian provider is looking to seize opportunities in the global online RMG segment as they continue to open up, in particular in North America.

Aristocrat announced on Sunday that its wholly owned subsidiary, Bidco, has reached an agreement to acquire the entire issue and issue the ordinary share capital of Playtech. The acquisition was recommended by the board of directors of Playtech. Businesses are waiting the transaction to be concluded in the second quarter of 2022, subject to shareholder approval.

The $ 3.7 billion transaction will be in cash. The offer promotes Playtech, based on the Isle of Man at $ 9.35 per share, a premium of around 58% over the last closing price of the company on October 15, according to a statement by Aristocrat. Shares of Playtech rose 57% on Monday to $ 9.26.

The Australian slots maker will raise $ 1.3 billion in a stock sale to help fund the acquisition. The stock will be sold at a discount of 8.6% from Friday’s closing price.

The acquisition of Playtech by Aristocrat is, according to the company’s press release, “in line with its growth strategy” and will create “one of the largest B2B platforms in the global gaming industry”.

The company also said that the combination of the two companies will bring significant scale in the online gaming and online sports betting segment; generate medium-term revenue and profit growth in the RMG Online segment in North America; expand customer engagement and the portfolio of both companies; and more.

The Australian brand expects Playtech’s Italy-based omnichannel gambling operator Snaitech will open up new European markets as business in North America continues to grow.

In an official press release, Trevor Croker, Managing Director of Aristocrates, spoke of the acquisition and said, “The company will be uniquely positioned to create sustainable shareholder value by seizing opportunities in the rapidly growing global online segment as they continue to open up, particularly in North America “. And he added: “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 common focus on responsible gameplay and innovation.

Mor Weizer, Head of Playtech, noted that the agreement “has the potential to improve our distribution, our ability to build new and deeper relationships with partners and strengthen our technological capabilities.”

Brian Mattingley, President of Playtech, added: “Over the past few years, Playtech has successfully repositioned its leading gaming technology and operations, expanding into strategically important regulated markets and generating significant growth in online B2B revenue. While the company has made significant progress, particularly in the Americas, Aristocrat’s proposal provides an opportunity for shareholders to accelerate the long-term value of Playtech. “