Deal could be worth up to £36 million and will see Playtech significantly enhance its own bingo offering while bringing in new licensees.
Thursday 18th February 2010
Playtech Limited, the international designer, developer and licensor of software for the online, mobile and land-based gaming industries, has purchased the business and assets of Alderney-licensed gambling platform provider Virtue Fusion Limited.
The deal will see Playtech pay an initial consideration of £29 million, subject to agreed working capital adjustments, funded from its existing cash resources along with an additional earnout payment of up to seven million pounds in the first quarter of next year based on Virtue Fusion’s performance over 2010.
Founded in 1999, Virtue Fusion operates one of the most liquid bingo networks with peak traffic of more than 6,000 concurrent players. As well as its core UK market, Virtue Fusion has a growing international presence in other European countries and offers integrated and a turnkey solutions to popular brands such as Mecca, William Hill, Ladbrokes, Virgin, Sky, Bet365, Paddy Power and Crown Bingo. Last year, the firm saw turnover increase over 34 percent to £12.3 million while its adjusted earnings before interest, tax, depreciation and amortisation hit £3.8 million from £2.3 million in 2008.
“The acquisition places Playtech in a leading position in international online bingo markets, complementing our leading position in poker and casino and, following the GTS acquisition, as a content provider,” said Mor Weizer, Chief Executive Officer for Playtech.
“It reflects our ongoing commitment to provide licensees with a comprehensive portfolio of best-of-breed gaming products.
“This is another significant enhancement of Playtech's product suite, bringing further liquidity and experience to our existing bingo offering and further strengthens our position as the pre-eminent software provider to the online gaming industry.”
Playtech stated that all of Virtue Fusion’s key personnel have contracted to remain with the business for a minimum of two years while it will soon be able to offer new licensees access to an extensive number of slots and other games from its library.
“We are delighted to be a part of Playtech,” said Bob McCulloch, Chief Executive Officer for Virtue Fusion.
“This deal will ensure our operators continue to benefit from the market-leading Virtue Fusion bingo product and, in addition, can now profit from Playtech’s greater international reach and access to a wider games portfolio.”
