Leading online casino software developers Playtech have announced that they have brokered an acquisition deal for Swedish software developers Quickspin, reportedly worth €50 million ($56 million). We reported last year that Playtech announced a bid of £460 million for trading platform Plus500. In the end they walked away from the deal after deep concerns about not getting clearance from the Financial Conduct Authority (FCA) in the UK. Playtech are not regulated in the UK and cited “demands” for change in operating policies by the FCA would take too much time to bring into effect and stepped away quickly from the negotiation table.
Now as part of its ongoing business strategy, Playtech have been sourcing new talent with which to grow its own entertainment portfolio and have achieved their goal after setting their sights firmly on the acquisition of the Stockholm based software developers.
Playtech and Quickspin deal set to benefit everyone, including online casino players
In 2015 Quickspin saw total revenue climb to €6 million and the companies continued growth is due in part to new clients and exciting new content. Since its inception back in 2011, Quickspin has released more than 20 high end online slot games and developed software for both the social gaming and online casino sectors, leading to numerous deals with online gambling operators and putting them on Playtech’s radar.“Part of the deal would also see the gaming company strengthen its footing in Nordic markets, hot on the heels of software titans NetEnt.”
Playtech are undoubtedly set to gain on many fronts from this deal, most notably now they have access to a world class portfolio of online slot games with which to bolster their position in an already competitive market. The entire Quickspin catalogue will be available alongside Playtech games directly through existing Playtech casinos and delivery systems meaning players would benefit instantly from the newly acquired content. Part of the deal would also see the gaming company strengthen its footing in the Nordic markets, hot on the heels of software titans NetEnt.
Playtech CEO optimistic about Quickspin’s future, founders to remain part of the company
The deal is brokered over 2 stages. Firstly, there will be an initial payment of €24 million which will buy 100% of the shares in Quickspin under both debt and cash free terms. The second stage will see the remainder (€26 million) paid on an earn-out agreement in relation to Quickspin’s earnings before tax in 2017/18
Currently there’s a great buzz in the Playtech camp, CEO Mor Weizer was extremely upbeat about the deal enthusing it would further cement the software developer’s status as a “leader in the provision of gaming platforms and content” and went on to say how he “looked forward to working with the Quickspin team”. Quickspin Founders Mats Westerlund, Daniel Lindberg, and Joachim Timmermans will stay with the company for a further 3 years.
Ultimately it’s a bold move for Playtech and one in which players are only set to benefit, both from the existing Quickspin selection plus all the new releases planned during the next two years that will receive more airtime thanks to the Playtech brand. Playtech are currently in “active discussions” with a number of potential new acquisitions for both its gaming and financial divisions, watch this space.