Aristocrat has announced its acquisition of Playtech for £2.7bn (€3.1bn/$3.7bn), a deal that may face competition from Gopher Investments, a minority shareholder in Playtech.
Playtech has recently experienced a transition to newly regulated markets, due to a decline in Asian revenue and slowing growth in the UK market. This shift has prompted Playtech to consider the acquisition offer from Aristocrat, as it provides certainty and liquidity for shareholders, rather than waiting for new markets to mature.
To ensure a smooth integration, Aristocrat will review the business and product verticals of Playtech and may require some operational and administrative restructuring. However, the impact on jobs is expected to be limited.
Aristocrat had previously made three unsuccessful advances to Playtech before the acceptance of the current bid. The completion of the acquisition is contingent upon the sale of Finalto to Gopher Investments, a detail that could be significant considering Gopher’s own bid.
Approval for the acquisition will need to be obtained from several countries, including Austria, Italy, Spain, Germany, and the UK.
| Key Points: |
|---|
| – Aristocrat acquires Playtech for £2.7bn (€3.1bn/$3.7bn) |
| – Gopher Investments submits a bid for Playtech |
| – Playtech undergoes a transition to newly regulated markets |
| – Asian revenue declines significantly, shifting focus away from the UK |
| – Acquisition offers certainty and liquidity for Playtech shareholders |
| – Limited impact on jobs expected during integration |
| – Aristocrat previously made three rejected advances |
| – Finalto sale to Gopher Investments crucial for the acquisition |
| – Approval needed from various countries |
