Aristocrat, an Australian slot machine maker, is acquiring Playtech in a blockbuster deal worth $3.7 billion (USD). It’s a huge move by Aristocrat that, in the blink of an eye, turns the company into a major player in the international igaming market.
Under the terms of the deal, Aristocrat will be purchasing all Playtech stock for 680 pence ($935 USD) a share. That’s a phenomenal 58 percent over the 492 pence ($6.75 USD) the shares were trading for last week.
Financial analysts expect the company’s stock to rise even further and are predicting long-term profits for Aristocrat from the deal.
When the deal is complete and Aristocrat officially moves into the igaming software business it will be a significant force in the business. With the Playtech acquisition, Aristocrat’s portfolio will include operations in 24 countries and 170 licensed operators.
In a statement reported on by the Independent, Aristocrat chief executive Trevor Croker said, “Additionally, the business will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online RMG segment as they continue to open up, particularly in North America.”
Playtech CEO Mor Weizer was just as enthusiastic adding, “This deal has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners and bolsters our technological capabilities. The combination of our two companies builds one of the largest B2B gaming platforms in the world, with the people, infrastructure and expertise to provide our customers with a truly best-in-class offer across all areas of gaming and sports betting.”
The deal is subject to approval by both regulators and Playtech stock holders. Officials at both companies are not expecting any significant bumps before the deal is finalized.