Playtech plc
Acquisition of Quickspin AB
Playtech (LSE: PTEC) today announces the acquisition of Quickspin AB ("Quickspin"), a fast-growing Swedish games studio that develops and supplies high-quality video slots to operators, both in online real money gambling as well as in the social gaming market.
Headquartered in Stockholm, Quickspin's portfolio currently consists of over 20 high quality games and with the company providing games to over 40 customers, including many international tier 1 operators. Quickspin generated revenue and adjusted EBITDA of €6.0m and €2.1m respectively in the financial year ending 31 December 2015 and is forecast to grow significantly over the coming years, with a number of new customers recently secured and with a strong pipeline of both new customers and new games.
The acquisition will provide Playtech with a proven virtual slot machine games portfolio, strengthening Playtech's position as the leading content provider in the industry, as well as providing greater penetration in the Nordic region. In addition to Quickspin's existing customer base, Playtech plans to distribute Quickspin's content through its existing distribution channels across all verticals.
Playtech will pay a maximum consideration of 6 times Quickspin's EBITDA in 2018, subject to a cap of €50m. The maximum consideration of €50m comprises an initial payment of €24m for 100% of the shares of Quickspin on a cash free / debt free basis with the remaining maximum consideration of €26m payable on an earn-out basis by reference to Quickspin's EBITDA in 2017 and 2018.
The founders of the business, Daniel Lindberg (CEO), Joachim Timmermans (CPO) and Mats Westerlund (CCO), who are all industry veterans and highly regarded in the online gambling market, will remain with the business for at least 3 years from completion.
Mor Weizer, Chief Executive Officer of Playtech, said:
"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 remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the Gaming division, together with discussions for selective bolt-on acquisitions in the Financials division."
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For further information, contact:
Playtech plc +44 (0)20 3772 2500
Mor Weizer, Chief Executive Officer
Ron Hoffman, Chief Financial Officer
c/o Bell Pottinger
Andrew Smith, Head of Investor Relations +44 (0)1624 645954
Bell Pottinger +44 (0)20 3772 2500
David Rydell / Olly Scott /
James Newman / Laura Jaques
About Playtech
Playtech is a market leader in the gambling and financial trading industries. Founded in 1999 and listed on the Main Market of the London Stock Exchange, Playtech has more than 5,000 employees in 13 countries.
Playtech is the gambling industry's leading software and services supplier with more than 130 licensees globally, including many of the world's leading regulated online, retail and mobile operators, land-based casino groups, government sponsored entities such as lotteries, and new entrants opening operations in newly-regulated markets. Its business intelligence-driven gambling software offering includes casino, live casino, bingo, poker and sports betting.
It is the pioneer of omni-channel gambling which, through Playtech ONE, offers operators and their customers, a seamless, anytime, anywhere experience across any product, any channel (online, mobile, retail) and any device using a single account and single wallet. It provides marketing expertise, sophisticated CRM solutions and other services for operators seeking a full turnkey solution.
Playtech's Financials division, run through subsidiary Markets Limited (formerly called TradeFX), is an established and growing online CFDs broker and trading platform provider, operating the brand markets.com. Its B2C focused offering is available in more than 100 countries and in more than 25 languages and is licensed and regulated in the EU and South Africa.
www.playtech.com
