After some time of looking for a suitable partnership, Playtech has announced its Quickspin acquisition deal. Quickspin is a Swedish games studio that has already shown its worth in the online gaming industry.
Quickspin Acquisition Could Reach Up to $55.6 Million
Playtech will be investing an amount of $26.7 million in the initial payment in the Quickspin acquisition deal. Further payments will be based on the amortization and depreciation that will take place in 2017 and 2018. The final payment will take place towards the end of 2018, by which time Playtech could be spending as much as $55.6 million. The final payment will be based on the company’s earn-out basis.
Quickspin’s three founders, Daniel Lindberg, Mats Westerlund, and Joachim Timmermans, will all remain with the company after the acquisition has been made. The terms of the agreement state that the three founders will continue to be employed for a minimum of three years after the acquisition is complete. Quickspin has its head office in Stockholm.
Quickspin has a portfolio of more than 20 games. The company provides these games to over 40 customers in a number of locations. In 2015, Quickspin’s annual revenues reached more than $6.6 million. The company’s adjusted earnings were $2.3 million after earnings had been adjusted before tax, interest, depreciation and amortization.
Playtech Comments on Quickspin Acquisition
Mor Weizer, the Playtech Chief Executive Officer, commented on the acquisition: “We are delighted to welcome Quickspin into the Playtech group. Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech’s position as the leading platform and content provider in the industry. We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family.”
Playtech has noted that the Quickspin acquisition comes with a “proven virtual slot machine games portfolio.” The company has plans to distribute the Quickspin content across Playtech’s regular distribution channels, reaching a far wider audience.
Weizer also noted that the company is still looking for other “bolt-on acquisitions” as well as much bigger acquisitions. The company is using strategic acquisitions to increase growth in the fast-paced gaming industry. Playtech is mainly focusing on growing its gaming division at this time, but is also looking for acquisitions for its financial division.