Playtech Acquires Gaming Technology Solutions

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The Isle of Man based leading online gaming software provider Playtech has announced that it is acquiring Gaming Technology Solutions Limited (GTS). The acquisition is being done through the purchase of the entire issued share capital of GTS. The initial payment for this acquisition is approximately €10.8 million. Further payments would be made based on the profitability of GTS over the next two years. The maximum amount that Playtech will have to pay is €21.6 million. Playtech has made the initial payment from its existing cash resources.

This acquisition is of immense strategic importance to Playtech. GTS is one of the fastest growing names in the gaming software business. Its advantage lies in that it is one of the largest game aggregators in the industry. The proprietary Enhanced Gaming Engine (EdGE) open gaming platform of GTS provides the licensees access to products from different online gaming software developers. The EdGE platform has demonstrated its cutting edge functionality and flexible connectivity. EdGE enables an operator to allow its players to use a single account across all online gaming products. EdGE also enables rapid delivery of new games across multiple languages, currencies and domains.

GTS services 15 licensees and 30 separate Internet gaming brands. These include well known and large European sports books, bingo hall and online casino operators. Most of these are not Playtech licensees. Hence with this agreement Playtech will considerably extend its reach. To its licensees GTS offers gaming content from 19 gaming software providers. The content includes over 200 integrated fixed odds games, virtual sports, table games and slots.

The GTS platform and range of games will complement Playtech's own in-house products. Together it will create a substantial games library. It will also be possible to integrate the EdGE platform with Playtech's Integrated Managed Solution player management system. The existing clients of GTS will have access to Playtech games and Playtech's clients will have access to the games GTS brings to the table. Playtech's CEO, Mor Weizer, pointed out that this deal will give Playtech greater exposure to sports books, which is the fastest growing segment of the online gambling industry. Weizer said that this deal will enhance Playtech's competitive advantage as "an independent software provider of choice with market leading integrated technology and a complete portfolio of best of breed gaming products."

Steven Matsell, GTS's Business Development Director said, "GTS's strategy is very much in line with Playtech's - to be the recognized market leader as a dedicated B2B software provider. This deal will underpin the growth of the platform and we very much look forward to the future as part of the Playtech team." For the 12 month period ended June 2009, GTS recorded revenue of £2.6 million and profit before tax of £0.3 million.

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