Playtech is bringing forward its remaining payment for the acquisition of PT Turnkey Services.
The group has agreed to bring forward payment of the remaining initial consideration due on its acquisition of PTTS in return for a discount of €4.2m.
Pursuant to the acquisition, which was announced March 10, 2011, the company agreed to pay Worldwide Online Enterprises an initial cash consideration of €140m in broadly equal, non-interest bearing half-yearly instalments over the 30 months following completion of the acquisition in July 2011.
Playtech has agreed with WOE to aggregate the outstanding balance of the initial consideration into one payment of ¤76m, which represents a nominal discount of 5.2 per cent and reflects a discount to the net present value of the outstanding balance. Playtech is utilising part of its available banking facilities in order to finance the payment.
The board believes this transaction makes economical sense and Playtech has reported that PTTS' performance since the acquisition has been "very strong," stating Q1 2012 as "outstanding."
As a result, there is an increased likelihood of payment of the additional consideration to WOE of ¤140m, in accordance with the original terms of the acquisition. Partly as a result of this strong performance, the group anticipates being able to repay the banking facilities drawn for the discounted initial consideration within a short period of time.
The money raised for the £100m equity placing announced in November 2011 will remain available for investment in further acquisitions and joint ventures.
As a result, there is an increased likelihood of payment of the additional consideration to WOE of €140m, in accordance with the original terms of the acquisition. Partly as a result of this strong performance, the group anticipates being able to repay the banking facilities drawn for the discounted initial consideration within a short period of time.
The money raised for the £100m equity placing announced in November 2011 will remain available for investment in further acquisitions and joint ventures.
