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Aristocrat set to acquire Playtech for £2.7 billion

  • author icon by Stelly in Industry
  • calendar icon October 27, 2021| Last updated: November 29, 2021
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Aristocrat plans to acquire Playtech, expand the online offering and build the largest B2B gaming platform in the world.


The interest in Playtech is rising and there are now other companies looking for an acquisition! Gopher Investments, working with the famous Rothschild, is planning a £3bn takeover of the Playtech company. CasinoWow will continue to follow the turn of events!

Later that month, Aristocrat recorded even a bigger yearly revenue increase! It was A$4.74bn (£2.54bn/€3.02bn/$3.43bn) for the fiscal year - this represents a 14.4% year-on-year rise!

The gambling industry is growing, and the online industry is taking centre stage. Aristocrat is a leading gaming company that focused more on land-based gambling ventures up to recently.

However, as the industry changes, so have Aristocrat’s priorities. With their plans to acquire Playtech for £2.7 billion, there is more possibility for expansion in their online venture.

An acquisition for future growth

With this new cash acquisition of Playtech by Aristocrat, shareholders will receive 680p per share. This values the business at £2.1 billion fully diluted and at £2.7 billion on an enterprise value basis. This price represents a 58.4% premium to the 429.2p per share closing price of Playtech shares as per closing price rates on 15 October.

The combination of these two leading industry names will ensure the creation of one of the largest B2B gaming platforms in the world. Bringing the people, the infrastructure, and the expertise to scale even further. This gives the companies the chance to truly provide customers with the best gaming and sports betting experience online.

There is no doubt that Playtech has already made a lot of progress in terms of delivery on its strategy in America specifically. With this acquisition, it will get the opportunity to do so even more widely. The company will take the time to further scale and maximize its opportunities.

The Aristocrat proposal gives shareholders the opportunity to secure faster delivery for Playtech's long-term value at a much more attractive price.

A new online betting powerhouse

With the combination of Aristocrat and Playtech, the business will gain 'material scale' in both the iGaming and online sports betting segments. Ensuring the delivery of medium-term revenue and earnings growth more particularly in the North American iGaming market.

Combining the assets through this deal will allow both Aristocrat's and Playtech's distribution, technology, and content to meet a broader range of customer and player needs. With Playtech's Snaitech business providing a B2C presence in a few European markets.

It will not just be an acquisition that delivers attractive financial returns but also boosts the combined share price of the businesses into the low to the mid-single-digit range before synergies and again in the mid-to-high-single digits after synergies have been achieved.

Still awaiting approval

Before the acquisition goes through, there is the matter of approval. The acquisition needs to go through regulatory approvals and closing conditions.

This includes the approval of at least 75% of Playtech shareholders. According to the latest reveal, the Playtech board will be recommending the approval of the Aristocrat acquisition. If everything plays out as expected, then the deal is expected to be finalised within the second quarter of 2022.

It is a great opportunity for growth and the next stage for Playtech in their development in industry-leading development.

According to Playtech CEO, Mor Weizer, it will be greatly beneficial to stakeholders and the company. Weizer believes the deal has the potential to enhance distribution along with the capacity to build new and deeper relationships with partners. On top of that, it will also enable Playtech to bolster its technological capabilities.

With the combination of Aristocrat and Playtech comes the building of one of the largest B2B gaming platforms in the world.

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