Playtech acquires Aristocrat Lotteries for 10m
International supplier eyes cross-sell opportunities and expands Italy presence as Aristocrat focuses on digital gaming arm
Playtech has made its second acquisition in as many weeks after agreeing to buy the lotteries businesses of rival supply firm Aristocrat for 10.5m.
The deal, which is subject to adjustments and closing conditions, will see Playtech obtain Stockholm-based Aristocrat Lotteries and Aristocrat Lotteries Italia and is expected to complete by the end of September.
Playtech said the bolt-on acquisition was “an attractive valuation with potential for further growth” and would help the company diversify across additional regulated markets and create cross-selling opportunities for other products and content supplied by the firm.
“Playtech’s multi-channel solution means that this content can be deployed across any location and delivered through any device as well as allowing operators to cross-sell their customers into digital channels,” Shay Segev, COO at Playtech, said.
“This is an excellent deal and further strengthens our leading position to retail operators in key regulated markets, while also creating new opportunities to expand in those territories as well as others,” he added.
Aristocrat chief executive Jamie Odell told the Sydney Morning Herald that the sale would allow the firm’s management to focus on growth areas including the US market and online gambling having previously identified the sectors as key to the company’s future.
Odell said during the firm’s FY2013 results last November that Aristocrat’s online business was “growing quickly” and represented an “exciting and expanding value stream that we are prioritising in line with our strategy”.
The acquisition will strengthen Playtech’s presence in the Italian gaming market with the company having confirmed it is to sign a supply agreement with a “major Italian media brand” in the coming weeks.
The purchase is the second in quick succession for the software supplier after last week announcing it had agreed to buy a 33.3% stake in casino and bingo operator BGO for £10m.
Speaking to eGaming Review after Playtech’s H1 results disclosure last week, CEO Mor Weizer said M&A activity remained firmly on the company’s agenda as it looked to continue investing its cash reserves in earnings accretive acquisitions.