24th May 2016 09:46
LONDON (Alliance News) - Gaming technology company Playtech PLC on Tuesday said it has acquired Swedish games studio Quickspin AB for a maximum consideration of EUR50 million.
Quickspin's portfolio consists of over 20 games which it provides to over 40 customers. In 2015, it generated revenue of EUR6.0 million and adjusted earnings before interest, tax, depreciation and amortisation of EUR2.1 million.
Playtech said those figures are forecast to grow significantly over the coming years, with a number of new customers recently secured and with a strong pipeline of both new customers and new games.
The acquisition will provide Playtech with a proven virtual slot machine games portfolio, it said, as well as strengthening its penetration in the Nordic region.
Playtech will pay a maximum consideration of six times Quickspin's Ebitda in 2018, subject to a cap of EUR50 million. This comprises a EUR24 million initial payment with the remaining consideration to be paid on an earn-out basis by reference to Quickspin's Ebitda in 2017 and 2018.
Founders Daniel Lindberg, Joachin Timmermans and Mats Westerlund will all remain with the business for at least three years from completion. Lindberg is also chief executive, while Timmermans is chief product officer and Westerlund is chief commercial officer.
"We are delighted to welcome Quickspin into the Playtech group. Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech's position as the leading platform and content provider in the industry. We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family," Playtech CEO Mor Weizer said in a statement.
"Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the gaming division, together with discussions for selective bolt-on acquisitions in the financials division," Weizer added.
Shares in Playtech were trading down 0.2% at 837.00 pence on Tuesday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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