Aristocrat Leisure Ltd., an Australian casino provider of slot machine maker, has agreed to buy Playtech, a British gambling software developing firm for 3.7 billion dollars (5 billion Australian dollars). According to Aristocrat, the offer on the London-listed Playtech is valued at 9.35 dollars (680 pence) per share which is about a 58% premium to the firm’s closing price on October 15. On Monday, Playtech shares rose to 675 pence (which represents a 57% increase.
Aristocrat also stated that it will raise 1.3 billion Australian dollars in a share sale to fund the acquisition of Playtech. The stock is set to be sold at an 8.6 per cent discount to the closing price on Friday. According to the Sydney-based company, this deal will add scale to the firm in the fast-growing world of sports betting and online gaming (which were estimated to be worth about 70 billion dollars globally last year). Aristocrat also said that the transaction between both firms will birth one of the biggest B2B platform providers to the gaming industry.
Aristocrat CEO Expresses Exciting Increase in Customer Satisfaction
Speaking on the development, Chief Executive Officer of the Australian casino-machines manufacturer, Trevor Croker stated that: “The combined group will offer a vast collection of end-to-end solutions and seamless player experience for gaming customers across the globe. The customers will enjoy the proceeds of a shared focus on innovation and responsible gameplay“.
Furthermore, this deal will also become the latest in a list of tie-ups targeted at staking out an early lead in online gambling. Online gambling across the US was already deregulating before it experienced a surge in the number of players during the lockdown occasioned by the Covid-19 pandemic.
Aristocrat said it expects Snaitech, (Playtech’s omnichannel gambling operator based in Italy) to open up new markets across Europe just as the North American business continues to flourish. The owner of Aristocrat said that the firm has gotten letters of irrevocable undertakings or intent from investors to support the deal. The investor includes the largest shareholder in Playtech and others who own about 20.7 percent of the software developer’s outstanding shares.
About Aristocrat – a company that has risen to the top of the casino industry
Aristocrat Leisure Ltd. is a manufacturer of gambling machines in Australia. The firm’s research and administrative headquarter is based in Sydney. It also has development and marketing offices in the US, Russia, and South Africa. Aristocrat is one of the top slot machine manufacturers in the world, only second to IGT (International Game Technology). The company has quite a number of amazing products in its portfolio including its famous Lightning Link series.
Will this mean live dealer geowth? Now the entire Playtech live dealer solution will also be under Aristocrat, and this could mean with its connection to land-based casinos, we could see fast growth in the Playtech live dealer collection. At the moment Playtech boasts the second largest number of live casino titles of 40+ titles, which are around 15 titles shy of Evolution. Also, Evolution has plenty of land-based casino options via its dual play brand – something Playtech doesn’t have, but with Aristocrat connected to multiple land-based casinos, this is a real possibility.