Playtech acquires Best Gaming Technology for ?115m
Purchase of SSBT provider designed to boost Playtech's retail and omni-channel offering
Playtech has purchased 90% of the shares in sports betting supplier Best Gaming Technology (BGT) for ?115m, the London-listed firm announced this morning.
Vienna-headquartered BGT provides self-service betting terminals (SSBTs) and other services to a variety of retail bookmakers, including Coral, Ladbrokes, Paddy Power and William Hill in the UK and Codere in Spain.
“In addition to supplying many of the most profitable bookmakers in the UK, the acquisition will provide Playtech with greater penetration into the Spanish and Italian markets with several significant potential new customers in the pipeline,” Playtech said in a statement.
BGT, which will be acquired using Playtech’s cash resources, also provides ePOS and till systems for betting operators and an omni-channel web/mobile betting platform.
Playtech said the digital retail products are one of the fastest growing areas for betting companies and “one of the most important elements of a true omni-channel offering”.
The London-listed provider added: “BGT’s product portfolio will enhance the Playtech ONE omni-channel offering, which enables players to enjoy a seamless, anywhere-anytime gaming experience across any product, channel and device, all using a single account and wallet.”
BGT’s business model is based on a revenue share of the gross win margin from each of the 24,000 SSBTs it provides. In FY2015, BGT generated revenues of ?34.7m, with adjusted EBITDA of ?10.8m.
Playtech CEO Mor Weizer said: “We believe that the future of gaming is for retail operators to digitise their offering, creating a simple and intuitive experience for customers as well as creating an opportunity to extend beyond retail and into online, including web and mobile.
“This follows the same trends we see in other commercial sectors around the world with the modernisation and digitisation of betting shops not only improving the retail experience but also adding a whole new channel as it integrates into an online offering.”
BGT founder Dr. Armin Sageder will retain 10% of the company, although Playtech has a call option to purchase the remaining shares at a valuation of 6x BGT’s 2019 EBITDA, subject to maximum consideration of ?45.9m.
Sageder added: “BGT is at an inflexion point in its development as we penetrate into new markets whilst upgrading our products at a phenomenal speed. I believe that becoming part of the Playtech family will allow Playtech and BGT to take omni-channel to the next level.”
Playtech said it expects the acquisition to generate high single-digit earnings accretion in the first full year of ownership.
M&A has formed a key part of Playtech’s growth strategy in recent years, and most recently targeted the Nordic markets with its ?38m acquisition of Quickspin.
Last year Playtech made a concerted push to expand its financials portfolio after striking a ?333m deal to acquire a majority stake in brokerage firm TradeFX, as well as a ?67m agreement for CFD broker Ava Trade.
It is also understood the supplier acquired London-based games developer and platform provider GECO Gaming earlier this year.