13th Jul 2016 07:06
LONDON (Alliance News) - Gambling software and services provider Playtech PLC on Wednesday said it has bought Best Gaming Technology GmbH for EUR138 million.
Headquartered in Vienna, Best Gaming provides sports betting software for gaming and sports betting operators, with customers including Ladbrokes PLC, Paddy Power Betfair PLC and William Hill PLC.
Playtech has bought 90% of Best Gaming through existing cash resources, with the remaining 10% retained by Best Gaming's Chief Executive and Founder Armin Sageder, who will remain with the company for at least three years from completion.
Playtech has a call option to purchase the remaining 10% at a valuation of six times Best Gaming's 2019 earnings before interest, tax, depreciation and amortisation, subject to a maximum consideration of EUR55 million. Sageder also has certain put options over his holding at the same valuation, and may be entitled to an additional EUR5 million payment subject to the achievement of certain operational milestones.
In 2015, Best Gaming made revenue of EUR41.6 million, pretax profit of EUR6 million and adjusted Ebitda of EUR12.9 million. Adjusted Ebitda in the first half of 2016 was EUR12.5 million.
The acquisition is expected to generate high single-digit earnings accretion for Playtech in the first full year of ownership.
"BGT is the leading provider of sports betting software and solutions for gaming and sports betting operators in what is one of the fastest growing verticals of our industry. BGT offers the market's most sophisticated retail sports solution which is also both modularised and flexible, allowing Playtech to quickly integrate with its own platform. As the only company that will offer FOBTs and SSBTs, all integrated with the world's leading online platform and products, Playtech will realise the potential of a true omni-channel offering for the benefit of both consumers and operators," Chief Executive Mor Weizer said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Playtech