In 2015, Playtech acquired YoYo Games, and had attempted to take over Plus500 and Ava Trade. The latter two deals fell through because of various regulatory concerns. The gaming software company has clearly been on the lookout for other opportunities to expand its business. At this time, it is clear that Playtech is actively pursuing new acquisition opportunities.
Playtech has Funds to Spend on Acquisitions
Playtech is currently in a strong financial position, and has cash reserves that can be used for acquisitions. When positive takeovers are undertaken, the company increases in value, and can continue to grow in the fast-pasted gaming and betting industry.
The Chief Executive of Playtech, Mor Weizer, has noted that at this time, Playtech will be focusing on growth within its gaming, rather than its binary, division. He said: “When we entered the financials market last year people asked if we were compensating for a lack of long-term growth in the gaming sector, and I think we have shown this is not the case. There is still a lot of opportunity and gaming continues to grow and grow.”
Although there are few details available ata this time, Playtech has been linked to bids for OpenBet. OpenBet, owned by Vitruvian Partners, is a sports betting software provider. It has been estimated that the business could be acquired for approximately £250 million to £300 million.
Weizer noted that “it is not a secret that they [OpenBet] are selling their business.” He has acknowledged that Playtech is currently in active discussions regarding a number of acquisition deals, however, apart from OpenBet, it has not been made clear what other deals are under discussion.
Playtech has £800 Million Available for Acquisitions
Playtech currently has £600 million in cash available. These funds can be used for acquisitions, along with a potential £200 million, which can be accessed if the company sells its stakes in the forex trading company Plus500, or in the sports and gaming company, Ladbrokes.
Playtech focused on acquisitions for its financial division last year, and has noted that there are still opportunities in that area. It appears that after the Plus500 deal fell through at the end of last year, the company has decided to readjust its acquisition focus to grow its gaming division. The gaming industry is certainly showing strength, and is continuing to grow around the world.