Playtech in 38.3m PokerStrategy acquisition
Founders of Power Affiliate to remain with business on consultancy basis
Playtech has bought eGR Power Affiliate PokerStrategy.com in a 38.3m bolt-on acquisition deal.
The London-listed software provider said in a statement that the acquisition is complementary to both Playtech’s PTTS marketing division – the holding company for affiliate business Europartners – and its overall poker offering. The deal has been funded by Playtech’s existing cash resources.
According to Playtech the affiliate business generated a profit before tax of 19.5 million for the year ended 31 December 2012, and as of the end of last year it had had gross assets of approximately 18.5 million and net assets of approximately 16.3 million
Playtech noted “during 2012 and 2013, two of [PokerStrategy’s] larger customers terminated their contracts, but are contractually obligated to continue to pay fees in respect of players acquired prior to termination for periods into 2015″.
Pokerstrategy said in a statement it will “maintain its independence in the market”. “We will continue working with all of our current partners and continue to add additional poker rooms for [players] to choose from, without any restrictions,” PokerStrategy explained.
Playtech has also taken on selected subsidiaries as part of the deal, which will see PokerStrategy founders Dominik Kofert and Enrique Guzmán remain with the business on a consultancy basis.
Kofert had left his role as Pokerstrategy chief executive officer at the start of this year to head up the affiliate’s parent company etruvian, with PokerStrategy’s former chief B2B officer Damian Sokol replacing him at the helm. Sokol will continue as CEO following the acquisition while chief operating officer Pavel Stehno will also remain in his role.
Playtech’s iPoker network ranks third for cash game traffic according to Pokerscout, and has recently launched its mobile offering. Operators with offerings on the network include bet365, Paddy Power and William Hill.
PokerStrategy said in today’s statement it would help upgrade Playtech’s poker software and “enhance the iPoker network”.
The affiliate has featured in eGaming Review’s Power Affiliates list since the inaugural year, and is widely considered to be among the world’s largest poker affiliate businesses. Etruvian has in the last 12 months launched affiliate businesses for the casino and financial trading sectors, both following the PokerStrategy educational model.
Playtech CEO Mor Weizer had said in April that the sale of the company’s stake in William Hill Online for £425m would allow it to pursue new bolt-on acquisitions as well as a “strategic alternative” to the WHO agreement, and the PokerStrategy deal appears to fulfil the first of these objectives.