M&A
Aristocrat's $3.7B Playtech bid underscores appetite for sports betting
October 18, 2021
UK-listed betting-software company Playtech has accepted a £2.7 billion (about $3.7 billion) takeover offer from Aristocrat, an Australian maker of slot machines and gaming content.
This year the sports-betting sector—and the gaming industry in general—has seen an uptick in deal activity as more US states allow betting across sports from baseball to boxing.
Aristocrat's Playtech deal comes less than a month after US sports betting group DraftKings offered to acquire London-listed rival Entain (formerly GVC Holdings) for £16.4 billion, topping a competing offer from casino operator MGM worth £8 billion.
In April, Caesars Entertainment acquired UK- and US-based betting giant William Hill for $4 billion. Meanwhile, in December, Irish sports betting firm Flutter Entertainment picked up DraftKings rival FanDuel for $4.17 billion.
Aristocrat offered to pay 680 pence per share for Playtech, representing a 58.4% premium on the company’s last closing price before news of the deal broke. The deal would create one of the largest B2B betting companies in the world.
"This deal has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners, and bolsters our technological capabilities," Playtech CEO Mor Weizer said in a statement.
Founded in 1999, Isle of Man-based Playtech develops platforms and content for the global gambling industry. The all-cash merger is expected to help it boost Aristocrat's presence in online gaming and sports-betting, particularly in North America, and give it the ability to operate across several European markets.
Featured image by dhmig photography/Getty Images
This year the sports-betting sector—and the gaming industry in general—has seen an uptick in deal activity as more US states allow betting across sports from baseball to boxing.
Aristocrat's Playtech deal comes less than a month after US sports betting group DraftKings offered to acquire London-listed rival Entain (formerly GVC Holdings) for £16.4 billion, topping a competing offer from casino operator MGM worth £8 billion.
In April, Caesars Entertainment acquired UK- and US-based betting giant William Hill for $4 billion. Meanwhile, in December, Irish sports betting firm Flutter Entertainment picked up DraftKings rival FanDuel for $4.17 billion.
Aristocrat offered to pay 680 pence per share for Playtech, representing a 58.4% premium on the company’s last closing price before news of the deal broke. The deal would create one of the largest B2B betting companies in the world.
"This deal has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners, and bolsters our technological capabilities," Playtech CEO Mor Weizer said in a statement.
Founded in 1999, Isle of Man-based Playtech develops platforms and content for the global gambling industry. The all-cash merger is expected to help it boost Aristocrat's presence in online gaming and sports-betting, particularly in North America, and give it the ability to operate across several European markets.
Featured image by dhmig photography/Getty Images
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