13th Nov 2006 07:02
Playtech Limited13 November 2006 Playtech Limited ("Playtech" or "the Company") Acquisition of leading poker network to enhance Playtech's poker offering Playtech (AIM: PTEC), the listed international designer, developer and licensorof software for the online and land-based gaming industry, is pleased toannounce today that it has agreed to acquire certain assets and undertaking ofTribeca Tables Europe Limited ("Tribeca"). The acquisition is subject to thesatisfaction of a number of conditions. Tribeca is a software designer that provides a poker network solution to anumber of the world's most respected online poker operators such as VCPoker,PaddyPower Poker and Blue Square Poker. In addition to software development,Tribeca also specialises in e-marketing and the development of online pokercommunities. Most recently, Tribeca announced that the Tain poker network wouldbe joining the Tribeca network, of which the Scandinavian group, Expekt, is thelargest customer. In the 12 months to 31 December 2005, the assets to be acquired generatedturnover of c. US$6.2m and gross profits of c. US$5.3m and in respect of thelast three calendar months preceding the date of the acquisition, the assets tobe acquired generated a turnover of c. US$3.9m and gross profits of c. US$3.4m.* Following Tribeca's decision to block certain territories, including the US, theentire Tribeca network will cease its operations in six months from the date ofthe agreement, by which time the migration of the online poker operators toPlaytech's platform is planned to be complete. Playtech expects that synergies between the two companies will lead tosignificant savings in respect of the additional costs involved in supportingthe migrated licensees. Additionally, the Company expects higher revenues to begenerated by the increased player liquidity, as well as the introduction ofPlaytech's casino games to the migrated licensees. The acquisition significantly strengthens Playtech's share of the global onlinepoker gaming market and is in line with the Company's continued strategy todiversify its portfolio and geographical reach. *Unaudited Figures provided by Tribeca. Avigur Zmora, Chief Executive Officer of Playtech, comments: "This is a landmark deal for Playtech, which in one move, transforms the Companyinto the world's leading poker network that excludes US players. Tribeca is anoutstanding fit for us and the company's licensees are operating, for the mostpart, in different geographical locations to Playtech's current poker licensees. "We look forward to welcoming Tribeca's licensees and offering them the bestcombination of poker knowledge and world leading technology. Both Tribeca andPlaytech are committed to a smooth transitional period to ensure that migratinglicensees can continue to offer the most attractive poker environment for theirplayers." Further details of the acquisition The consideration for the acquisition is calculated according to a formula basedon Playtech's earnings from the acquired assets. On the basis that the Companywill generate c. US$16m over the coming year from the migration date, theconsideration to be paid for Tribeca will be US$75m. The final considerationwill be adjusted upon Playtech's realised revenues. The maximum considerationthat the Company will be liable to pay is US$139m, which will be paid in the event that the revenue generated from this acquisition exceeds US$29m over thecoming year from the migration date. Playtech will pay the consideration in cash in four instalments. The first ispayable upon satisfaction of specific conditions. The second, third and fourthpayments are to be made on the 9th, 18th and 24th month intervals, after thedate of the agreement, respectively. - ends - For further information: Avigur Zmora, Chief Executive Officer, Playtech Limited c/o Bell Pottinger Tel: 020 7861 3232 www.playtech.com David Rydell / Amy Rajendran Bell Pottinger Corporate & Financial Tel. 020 7861 3232 Notes to Editors About Tribeca Tables Europe, Limited: Tribeca Tables Europe, Limited is registered in the Channel Island of Alderney.Founded in 2001, Tribeca is the world's first online poker room aggregator.Today, Tribeca Tables is partnered with 10 major gaming companies and supportsover 100 brands with millions of customers. Tribeca received corporate finance advice from McNamee Lawrence & Co. LLC andMontrose Partners LLP. Playtech Limited Playtech develops unified software platforms for the online gambling industry,primarily targeting existing online operators wanting to upgrade their system;sports books looking to diversify and land-based operators making their onlinedebut. Playtech gaming applications include online casino, poker, bingo, live gaming,land-based kiosk networks, fixed-odds games and video betting terminals. Founded in 1999, Playtech has over 300 personnel located globally. The Company listed on the AIM market in March 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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