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17
December 2009
Acquisition
Of Gaming Technology
Solutions
The
Online
Casino
software publisher
Playtech
has announced that it has entered
into an agreement to acquire the
entire issued share capital of
Gaming Technology Solutions
Limited (GTS).
GTS
is a gaming software business and
one of the largest game
aggregators in the
industry.
The
consideration for the acquisition
of GTS comprises an initial
amount of approximately €10.8m
and further consideration based
on the profitability of the GTS
business over the next two years
capped at €21.6m. The initial
amount has been financed from
Playtech's existing cash
resources.
GTS
provides its gaming solutions to
some of the most well established
gaming companies in Europe. GTS
has agreements with 15 licensees
and 30 separate online gaming
brands, including many of the
well known large European
Sportsbooks, along with
Bingo
and Casino operators. Of these,
there are more than 10 well
established operators not
currently Playtech casino
licensees.
GTS
has developed its Enhanced Gaming
Engine (EdGE) open gaming
platform which provides access to
products from a diverse range of
game developers and content
providers. The platform is highly
regarded for its cutting edge
functionality and flexible
connectivity. This greatly aids
the ability of an operator to
fully integrate a player's wallet
into one account across all games
and products. EdGE also
facilitates rapid delivery of new
content across multiple
languages, currencies and domains
and games can be delivered as
browser-based or downloadable
client products.
GTS
has partnered with 19 games
content providers with 200
integrated fixed odds, virtual
sports, table games and slots
from a combined catalogue of well
over 500 games. Many incorporate
recognised brands, rich feature
functionality and graphics which
help develop considerable player
loyalty. The games are created
internally or sourced from GTS's
established network of third
party game developers across the
world, which EdGE is able to
seamlessly integrate.
For
Playtech, the acquisition brings
a highly regarded open platform,
a range of games which complement
its own core in-house products,
and an enhanced product pipeline.
The combination will produce a
very substantial games selection
library for operators for both
casino and soft games. EdGE can
be integrated within Playtech's
class-leading Integrated Managed
Solution (IMS) player management
system and as such can
substantially increase an
operator's capacity for
cross-selling onto higher margin
products.
GTS
has a strong track record of
games integration and has enjoyed
considerable recent growth. For
the 12 month period ended June
2009, GTS recorded revenues of
£2.6m and adjusted PBT of
£0.3m, before amortisation
of intangibles of
£1.8m.
Playtech's
CEO, Mor Weizer commented: "We
are delighted to welcome the GTS
team which will enhance our
capabilities in an important
complementary product area by
bringing a sophisticated
technology platform and a
portfolio of top quality games as
well as suite of new clients. The
success of the games sections in
sports betting operators sites is
evident and this deal will give
Playtech greater exposure to what
is one of the fastest growing
industry segments. GTS has
amongst its licensee base many of
the most well established
European sportsbetting operators
and we look forward to developing
closer ties with them.
"This
is an important strategic
acquisition for us and reflects
our commitment to provide a
comprehensive range of innovative
gaming products. We are
positioning Playtech as the
independent software provider of
choice with market leading
integrated technology and a
complete portfolio of best of
breed gaming products. We see
this deal as furthering what is
already Playtech's competitive
advantage in the growing online
gaming market."
Steven
Matsell, GTS's Business
Development Director added:
"GTS's strategy is very much in
line with Playtech's - to be the
recognised market leader as a
dedicated B2B software provider.
This deal will underpin the
growth of the platform and we
very much look forward to the
future as part of the Playtech
team."
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