Tuesday September 2,2014 : PLAYTECH IN DEAL WITH ARISTOCRAT V.L.T. PROVIDER
Reports acquisition of Aristocrat Lotteries AB and Aristocrat Lotteries Italia s.r.l.
Playtech plc has announced the "bolt-on acquisition" of the Stockholm-based retail VLT businesses Aristocrat Lotteries AB and Aristocrat Lotteries Italia s.r.l. from Aristocrat Leisure Limited.
The two Aristocrat firms provide a server-based gaming platform for VLTs and Casino markets to two major retail VLT operators in Norway and Italy, marketed under the well-established TruServ brand.
Consideration for the acquisition, which will be funded from Playtech's existing cash resources, is an aggregate Euro 10.5 million, subject to adjustments and satisfaction of closing conditions. Completion is expected to take place by the end of September.
Playtech management says the purchase price and earnings result in a low double-digit multiple, an attractive valuation with potential for further growth, which complements and strengthens Playtech's existing land-based operations.
Playtech's directors believe the acquisition will position the group's land-based operation as one of the leading suppliers of VLT systems in Europe and Latin America, further extending its reach and diversification across key regulated markets.