Acquisition

RNS Number : 5997Q

Playtech PLC

02 September 2014

 

Playtech plc

("Playtech" or the "Company")

Acquisition of Aristocrat's VLT business

Playtech (LSE: PTEC) today announces the bolt-on acquisition of the Stockholm-based retail VLT businesses Aristocrat Lotteries AB ("ALAB") and Aristocrat Lotteries Italia s.r.l. ("ALI") from Aristocrat Leisure Limited (ASX: ALL).

Together, ALAB and ALI provide a server-based gaming platform for VLTs and Casino (Class III) markets  to two leading retail VLT operators in Norway and Italy, marketed under the well-established 'TruServ^TM brand.

Consideration for the acquisition, which will be funded from Playtech's existing cash resources, is an aggregate €10.5 million, subject to certain adjustments and satisfaction of closing conditions. Completion is expected to take place by the end of the month.

The purchase price and earnings result in a low double-digit multiple, an attractive valuation with potential for further growth, which complements and strengthens Playtech's existing land-based operations.

The Board of Playtech believes the acquisition will position Playtech's land-based operation as one of the leading suppliers of VLT systems in Europe and Latin America, further extending its reach and diversification across key regulated markets. The transaction will also enable Playtech's land based division to replicate its success with its Videobet solution in the UK, increase market share within the wider global VLT market and create cross-selling opportunities for other products and content in existing as well as new jurisdictions.

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Further information

Playtech plc Mor Weizer, Chief Executive Officer Ron Hoffman, Chief Financial Officer c/o Bell Pottinger	[phone]
Adam Kay, Head of Investor Relations	[phone]
Bell Pottinger                                                  David Rydell / Olly Scott / James Newman / David Bass	[phone]

Forward looking statements

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". By their nature, forward-looking statements involve risk and uncertainty since they relate to future events and circumstances. Actual results may, and often do, differ materially from any forward-looking statements. Any forward-looking statements in this announcement reflect Playtech's view with respect to future events as at the date of this announcement. Save as required by law or by the Listing Rules of the UK Listing Authority, Playtech undertakes no obligation to publicly revise any forward-looking statements in this announcement following any change in its expectations or to reflect events or circumstances after the date of this announcement.

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, CRM services and hosting.

The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech is listed on the London Stock Exchange and has more than 3,400 employees located in twelve countries. Its leading gaming applications include casino, bingo, poker, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com

 

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