Aristocrat Leisure has proposed a A$5 billion ($3.7 billion) cash offer for the full acquisition of PlayTech plc, a move which will allow the supplier to enter the fast-growing online real money gaming segment.
Playtech is a leading technology provider for the global gambling industry and one of the largest online gambling software providers in the world.
Aristocrat said it believes the acquisition will accelerate its growth strategy and deliver strategic benefits, including providing material scale in the US$70 billion online RMG (real money games) segment – particularly in North America.
Aristocrat in its investor presentation noted that online RMB has expanded dramatically over the past few years. Online RMG GGR is expected to reach US$80 billion in 2021 and US$112 billion by 2025.
The company said the acquisition will also enable Aristocrat to deliver medium-term and earnings growth and to meet a “broader range of customer and player needs”.
Playtech’s Snaitech business will also enable Aristocrat to operate and innovate in multiple European markets, the company added.
Aristocrat CEO and managing director Trevor Croker said: “The proposed combination would bring together Aristocrat’s world-class gaming content and customer and regulatory relationships with Playtech’s industry-leading global online RMG platform (B2B) and European B2C footprint.”
“The combined group would offer a broad portfolio of end-to-end solutions for gaming customers around the world, as well as seamless player experiences, underpinned by a shared focus on responsible gameplay and innovation.”
