Australia’s Aristocrat Leisure to buy UK gaming software maker Playtech for $2.9b

Photo: Joshua Hoehne / Unsplash.com

Australia’s Aristocrat Leisure said on Monday it would buy London-listed gaming software supplier Playtech for 2.1 billion pounds ($2.89 billion), offering new growth areas for the gambling machine maker including real money gaming.

Playtech shares soared 57% to a three-year high and were trading 6.5 pence short of the offer price of 680 pence per share. Aristocrat Leisure shares are on a trading halt until Oct. 21.

A shift to online betting amid the pandemic has prompted consolidation in the industry, with UK-based Entain being approached by U.S. fantasy sports company DraftKings last month.

Australia-listed Tabcorp Holdings also received multiple bids earlier this year for its wagering unit.

Separately, Playtech said its largest shareholder with a stake of about 21% had backed the offer. The company also added that it would recommend stakeholders vote in favour of the deal as the combined group would be well-placed in a sector going digital.

“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,” Aristocrat Chief Executive Officer Trevor Croker said.

The Australian company said it would fund the deal with a A$1.3 billion ($964.21 million) equity raising, alongside new debt and existing cash. It expected a boost to earnings from the first year of closing the deal.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.