Playtech Cyprus Ltd. (AIM:PTEC) has signed a non-binding memorandum of understanding to buy €95 million worth of assets and businesses for social gaming from controlling shareholder Teddy Sagi, as part of the company's preparations to move to London Stock Exchange's Main Market from the Alternative Investment Market (AIM).
Playtech also signed an agreement to buy or rent a new office worth ₤10.5 million from Gaming Technology Solutions Ltd., in which Sagi is a shareholder, and it is bringing forward the final payment of a Sagi company, PT Turnkey Services Ltd. (PTTS), in exchange for a €4.2 million discount on the €140 million deal. Playtech acquired the company in July 2011. Playtech will pay Worldwide Online Enterprises Ltd. the outstanding €76 million balance on the deal, instead of continuing the semiannual installments.
Playtech plans to acquire B2B (business-to-business) real money gaming and B2B social media assets and businesses and it will acquire 20% in a B2C (business-to-customer) venture from companies in which Sagi is a shareholder
The company said, "Playtech has been monitoring social gaming activity operated by various companies through social networks and mobile platforms and has been analyzing a number of ways to penetrate the social gaming arena. By completing the intended transaction, Playtech would gain access to a broad range of social gaming platforms and products and believes it would be uniquely positioned as a leading B2B provider with the ability to supply cross platform capabilities for a full suite of products including social casino, poker, bingo and rummy."
Playtech has €140 million in cash, which means it has no problem financing the acquisitions. In December 2011, it raised ₤100 million in its second secondary offering, with most of the money coming from Sagi.
Playtech's share price fell 3.8% today to ₤3.37, giving a market cap of ₤1.01 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2012
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