Playtech (AIM: PTEC) CFO Shuki Barak has told the UK Financial Times that the online gaming company is mulling a huge acquisition. He told the newspaper that, "Playtech is actively examining a number of acquisitions, including acquisitions worth half a billion to $750,000 of a player in the online gaming site marketing sector."
Barak said that the company has a call option, which is based on a 5.5x multiple over annual profits of $500 million. He said, "Playtech is not shy to talk about potential acquisitions because mergers and acquisitions will play an important role in speeding up growth."
However, Barak declined to disclose any details about potential targets.
According to Barak, the call option is to expire in March 2011 and could be exercised in 2010 to purchase a marketing company, as is currently being assessed. He referred to Jefferies and Deutsche Bank as advising on the potential deal.
Playtech revealed that it is assessing four smaller targets, including a hosting provider, a customer services specialist and a payment advisory firm, the CFO said. The management is also planning to finalize between 10-15 license agreements in 2009.
Playtech has a market cap of ₤1.1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 28, 2009
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