Playtech has agreed to an acquisition by Australian slot machine industry veteran Aristocrat Leisure in a deal worth €3.2 billion, the latter announced.
If the acquisition gets approved by shareholders, the new business will employ staff in 24 countries and territories worldwide, boasting seven studios and operating in 30 regulated jurisdictions.
Playtech Says Yes to Aristocrat's Offer
According to the Australian gambling machine industry veteran, the acquisition would offer "material scale" for the combined business in both the iGaming and online sports betting verticals and in a number of markets.
The proposed €3.2 billion deal is expected to bring growth in North America and Europe for the combined business.
Thanks to Playtech's recent entry into various US states, the combined business is expected to bring growth in North America, the company noted, while Aristocrat's 2018 takeover of Snaitech—Italy-based gambling and sports betting platform—will be used to leverage growth in Europe.
The acquisition, which is expected to be completed in the second quarter of 2022, remains subject to several regulatory approvals, including consent from a minimum of 75% of Playtech's shareholders.
Creating a True Industry Leader
Commenting on the deal, Aristocrat chief executive Trevor Croker said that while the Australian company brings "world-class" content, customer, and regulatory relationships to the table, Playtech will offer an "industry-leading" online gaming platform and substantial B2C footprint in Europe.
"Additionally, the business will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online RMG segment as they continue to open up, particularly in North America," Croker added.
The new business will be a true industry leader in the global online RMG space, Aristocrat CEO pointed out.
The combination of "Playtech's talented team with Aristocrat's established strengths and momentum," the CEO pointed out, "will create a true industry leader in the global online RMG space."
Playtech CEO Mor Weizer also commented on the news, describing the combination as "an exciting opportunity in the next stage of growth for Playtech."
"The combination of our two companies builds one of the largest B2B gaming platforms in the world, with the people, infrastructure and expertise to provide our customers with a truly best-in-class offer across all areas of gaming and sports betting," Weizer concluded.