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Wednesday July 20, 2011 : Internet gambling software company acquires Mobenga and signs up Gala Coral as a client
The Isle of Man-based online gambling software company Playtech plc has announced two major deals, acquiring Gala Coral as a long term software licensee and adding the Swedish Mobenga mobile gambling technology company to its growing stable of subsidiaries.
In the Mobenga deal, Playtech has entered into an agreement to acquire the entire issued share capital of Mobenga AB. The Swedish firm is a major provider of mobile sportsbook betting platforms and has an impressive base of customers, including major brands such as PaddyPower, Unibet, Skybet, Stan James, and Nordicbet.
The consideration for the acquisition comprises an initial amount of approximately Euro 8 million subject to final working capital adjustments, and further consideration based on a 6x multiple of the profit before tax of the business in 2013, capped at Euro 15.8 million. The initial amount has been financed from Playtech's existing cash resources.
A Playtech spokesman said that Mobenga has developed an effective mobile solution delivering a sportsbetting offering on to handheld devices, including smart phones and tablets, across Apple iOS, Android and HTML. This provides a fully customised and highly flexible offering allowing an operator to properly reflect its brand through the design, look and feel of its mobile channel, complementing its online offering. The solution offers operators a range of features such as a touch user interface (TUI) and advanced functionality, including live video streaming which is fully integrated with its existing platform.
The spokesman said that for Playtech, the acquisition brings respected mobile technology in a segment viewed as being a key contributor to future growth in online gaming. It will also facilitate the integration with other mobile gaming offerings such as casino or games, positioning Playtech as the market leading mobile gaming provider across a broad range of products.
"Mobile is delivering an increasing share of new customers to sportsbetting, with a number of major operators reporting that more than 30% of their recent sports customers are betting through mobile devices. Lifetime values of players active on mobile have been higher than those playing solely online, with a greater proportion of in-play betting and higher average bet sizes," he said.
The award winning Mobenga company achieved profitability in Q2 2011 and on the current run rate is expected to be profitable for the full year.
Christian Rajter, founder and CEO of Mobenga, said: "I am very excited by the opportunities this deal brings. It will help us take Mobenga to the next level and gives us exposure to the widest possible group of potential licensees. It underpins the future growth of the business and we look forward to being part of the Playtech team and contributing to the development of a leading mobile capability integrated into the market's leading gaming platform."
Playtech's deal with the UK gambling group Gala Coral is a long term contract through which the software company will provide its internet gambling technology platform and gaming products to the respected UK land and online gambling group.
Gala Coral has a substantial online gambling business which includes a major presence in the UK bingo market as well as casino, poker, live casino and sports betting. It has an international online presence through the Eurobet brand, which is also regulated in Italy. In the UK and Italy, Gala Coral is a substantial land based operator with more than 2,000 betting shops, together with 142 bingo clubs and 27 casinos.
Playtech will provide a full range of gaming products, in addition to its IMS gaming management platform which will be utilised across all products available to Gala Coral players, to provide full player management, player retention and back-office tools. This is a unique offering that will allow Gala Coral to enjoy advanced management tools across all areas of its business. The platform will support Gala Coral's entire product range, including sportsbetting, and it is expected that the migration from existing suppliers to the Playtech platform and products will commence in the first half of 2012.
Gala Coral is an existing licensee of Playtech through its GTS games platform and operates over 6,500 gaming terminals which utilise Videobet software. As part of the agreement Gala Bingo will migrate to Playtech's Virtue Fusion network.
Playtech's CEO, Mor Weizer said: "The strengthening of our relationship [with Gala Coral] also sees a significant opportunity for both companies as Playtech's powerful IMS becomes the sole management and back office technology platform for a major operator, including for third party products.
"The ability to manage and optimise players' activities across all products has great benefits as it allows Gala Coral to address players' needs and maximise its performance at the same time. This deal recognises our platform's technological leadership and we are confident it will provide Gala Coral with the player management tools and functionality to drive its entire online business."
Gala Coral's Group CEO, Carl Leaver, commented: "Gala Coral already enjoys a strong working relationship with Playtech and this deal will help drive our next phase of growth."

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