Australian gaming provider Aristocrat Leisure has solidified its intent to acquire iGaming provider, Playtech, by raising $1.3 billion.
According to a report by Inside Asian Gaming, a retail entitlement offer, that followed an institutional entitlement offer recently concluded by the company, has helped it raise $895 million. The retail portion contributed $405 million with the release of 9.7 million new Aristocrat shares, valued at $41.85 each.
Aristocrat’s A$3.9 billion bid for Playtech was announced on October 18 2021, with the firm specifying that this would be funded by $1.1 billion in existing cash, a US$2.05 billion term loan and $1.3 billion in equity raising.
Playtech recently received a competing bid from Gopher Investments, which is currently its second-largest shareholder, however, Aristocrat appears unfazed and is forging ahead with plans to conclude the agreement.
Well Worth the Wait
Playtech was established in 1999 and currently operates out of Isle of Man. The provider boasts a collection of diverse iGaming content and software which is currently licensed by regulators in 30 jurisdictions.
On November 8, Aristocrat reiterated its interest in and intention to acquire Playtech in a statement that said,
“Our long-term engagement with regulators across key gaming jurisdictions together with strong financial fundamentals, deep customer relationships, and established presence in global gaming markets positions us to complete the transaction as planned in the second quarter of calendar year 2022. Aristocrat Leisure believes that this will provide certain value to Playtech shareholders while the combined group will also provide greater opportunities to Playtech employees.”
Opportunities
This deal will greatly boost Aristocrat’s presence in the global gaming market, although the company is likely to face some regulatory hurdles as its footprint expands.
The company is counting on Playtech’s business-to-customer division’s poker machines, sports, horse racing and online games to propel it into a sector of the industry that it has, until this point, left mostly unexplored.
Playtech’s European focus represents a lot of opportunities in a diverse market, particularly its business-to-business arm. The business unit in question is a platform and technology provider, servicing over 170 online gaming operators in the RMG sector, like the sports betting monoliths, Entain, Flutter and Bet365. Playtech’s selling point is its ability to provide a one-stop-shop for games management systems, loyalty and VIP programs, risk and fraud tech, and data analytics and game content.
