Playtech at the Centre of a Bidding War as Interest Intensifies
Playtech, a leading iGaming software developer, is at the centre of a £3 billion bidding war. Caliente Interactive is in “advanced talks” to buy out Tekkorp Digital, a purpose acquisition operator in the US. Playtech owns almost half of Caliente.
As part of the deal, Caliente Interactive, an online gambling specialist that is massive in Mexico, would absorb Playtech’s right to acquire a 49% stake in its parent company. Caliente would also contribute an estimated £440 million to a public equity private investment fund.
Playtech’s board would have to ratify any deal, but the fact that the deal would trigger a payment to shareholders is expected to sweeten the terms and conditions. However, another company is keen to add Playtech to its portfolio.
JKO Play is expected to table a bid for the London-based firm, too, which might muddy the waters and complicate matters. Led by former-F1 boss Eddie Jordan, who also has ties to football media firm COPA90, JKO Play is expected to 750p-a-share. Playtech has debts of around £600 million, so the deal would value the business at £3 billion.
More Options on the Table
Playtech presents itself as the largest iGaming software developer in the world, and recent developments appear to suggest this is the case after bids by Caliente Interactive and JKO Play. These are on the back of two separate deals that aim to acquire Playtech.
In November, Gopher Investments pulled out of talks that would have split Playtech up between three companies in total. In a statement, Gopher said it was dedicated to buying the British software company in a separate agreement without partners.
Gopher is still expected to purchase Finalto, Playtech’s financial trading arm, for £250 million.
More recently, Playtech accepted an offer from Aristocrat Technologies, an Australian gambling machine manufacturer. That deal valued Playtech at 58.4% greater than its then-closing price. That was in October.
So, there is no shortage of suitors for a business that has significantly raised awareness of its brand in the last decade.
Why Is Playtech Sought-After?
The health of the online gambling industry is a massive part of why iGaming software developers are being snapped up. With a worldwide market valuation of £170 billion in the US alone, it’s no surprise that they are being targeted. Recently, Caesars Entertainment bought William Hill and DraftKings attempted to purchase Entain.
When you combine the position of the industry with Playtech’s role in its growth, you can’t help but see a pattern. Thanks to a gaming portfolio that includes the Age of the Gods series and Superman II, the brand has become one of the most notable slots and table games providers in the world.
Playtech’s offerings can be found in several reputable libraries, from Bet365 to Paddy Power and LeoVegas, which only solidifies its position. Customers love Playtech services, too, because they are simple, easy to play, and come with excellent opportunities to win rewards. Indeed, most online casinos use Playtech’s top games to entice players to register with them through promotions that add value, such as the best free spins no deposit offers, cashback, and 100% bonus matches on deposits.
As a result of these factors, Playtech is a household name among operators and consumers in a sector that continues to expand at a rapid rate.
