PLAYTECH SPEEDS UP PTTS PAYMENT
Friday July 27,2012 : PLAYTECH SPEEDS UP PTTS PAYMENT
Euro 140 million additional consideration kicks in
Playtech plc has announced that the conditions related to the acceleration of the additional consideration of Euro 140 million payable to Worldwide Online Enterprises Ltd in respect of the March 2011 acquisition of PT Turnkey Services Limited have been fulfilled.
PTTS's continued strong performance in Q2 2012 has triggered the accelerated payment of the entire additional consideration through PTTS achieving an annualised adjusted EBITDA in excess of Euro 40 million in the first two quarters of 2012, which is an approximate 100 percent increase since completion of the acquisition.
In accordance with the original acquisition terms, the additional consideration of Euro 140 million has become payable in four non-interest bearing instalments and will be met by the Playtech's operating cash flows on the following dates:
* Within one month, Euro 42 million;
* On 31 January 2013, Euro 35 million;
* On 31 July 2013, Euro 35 million; and
* On 31 January 2014, Euro 28 million.
Mor Weizer, CEO of Playtech, said: "The acquisition of PTTS has been very successful for Playtech with its financial performance exceeding expectations. The acquisition has strategically positioned Playtech as a turnkey service provider for the online gambling industry and provided profitable new revenue streams. It has also enhanced our ability to partner with third parties in regulated markets."
