Playtech to invest 95m in social
Solutions provider proposes to take 20% stake in assets in which Teddy Sagi has a beneficial interest.
Playtech has signed a non-binding memorandum of understanding which could see the solutions provider secure a 20% stake in social gaming assets in which its founder Teddy Sagi has a beneficial interest.
The MoU is anticipated to precede a 95m investment which would see Playtech gain access to “a broad range of social gaming platforms and products,” according to a statement to the stock exchange this morning.
In the same statement the company explained that it “Believes it would be uniquely positioned as a leading B2B provider with the ability to supply cross platform capabilities for a full suite of products including social casino, poker, bingo and rummy,” upon the transaction being completed.
It would see Playtech acquire assets including real-money online casino software and content, as well as online poker and mobile poker and casino software, both for Apple and Android devices.
The company has also agreed to pay the outstanding balance for its acquisition of Sagi’s PT Turnkey Services, the holding company for affiliate business Europartners, making a discounted final payment of 76m, noting that “PTTS’s performance since acquisition has been very strong and the first quarter of 2012 has been outstanding.”
Playtech has simultaneously announced the appointment of Sagi as an advisor to the company for a nominal fee, while its UK subsidiary GTS is set to move into a new office in London which is currently owned by a company in which Sagi has interests.
The company hopes to move to the main stock market this year, but analyst Simon French of Panmure Gordon explained: “today’s announcements will reignite concerns over related party transactions”