Playtech has acquired the entire issued share capital of developer of interactive gambling and betting games Ash Gaming.
The online gaming software and services provider has acquired Ash Gaming for a total cash consideration of up to £23m, comprising initial consideration of £15.5m and deferred contingent consideration of up to £7.5m.
Playtech, which is a finalist in the International Gaming Awards in January, believes that there are significant combined benefits to be gained from the acquisition, including greater revenue opportunities and enhanced economics across the value chain.
The acquisition will also enable the broader distribution of the game developer's content both internationally and through a wider range of distribution channels than its historic position on an operator's games tab. This will include being positioned more broadly within Playtech's mainstream casino product; through poker and bingo side games; on Videobet's land-based platform; and on both mobile and social platforms. This is expected to deliver a number of incremental revenue streams combined with the organic growth of Playtech's content library.
It will also retain a greater proportion of the economics from its existing casino and games product. The acquisition of Ash Gaming, which has one of the highest penetrations of games in the UK market and a number of licensees through Playtech's GTS open platform, will substantially increase the percentage of GTS content over which it retains full revenue economics.
Mor Weizer, CEO of Playtech, said: "The business is demonstrating significant growth and we expect this to continue. I am confident that given the historic performance and current run rate this acquisition will prove to be very attractive for Playtech's shareholders. Ash Gaming continues to deliver great games that operators want on their sites. This is key for many licensees where content is king and we strive to provide them with the very best games and a diversified portfolio to enhance their player experience as that maximises their player loyalty and player value.
"At the same time, we see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximise both revenue and earnings across the value chain. In newly regulated markets both in Europe and other territories such as Canada, Ash Gaming's content is set to gain considerable traction."
