Playtech agrees final 140m payment for PTTS
PTTS's continued strong performance in Q2 2012 triggers accelerated payment of entire additional consideration of 140m.
Playtech has agreed payment terms for the remaining 140m fee owed to Teddy Sagi’s Worldwide Online Entereprises following its July 2011 acquisition of its majority shareholder’s PT Turnkey Services Limited (PTTS).
PTTS’s continued strong performance in the second quarter of this year triggered the accelerated payment of the entire additional consideration of 140m, the company announced in a stock market update this morning.
“The acceleration has occurred by virtue of PTTS having achieved an annualised adjusted EBITDA in excess of 40m in the first two quarters of 2012, which is an approximate 100% increase since completion of the acquisition,” it said.
Playtech completed its 280m (£240m) acquisition of Sagi’s PTTS in July last year following its intention to purchase the assets in March 2011. Integration of the holding company for Europartners, one of the largest affiliate programmes in egaming, into Playtech was completed at the end of last year.
The additional consideration is payable in four non-interest instalments and will be met by the company’s operating cash flows, Playtech added. The first instalment of 42m is payable in one month from today, followed by a payment of 35m in January next year, 35m on July 31 2013, and 28m on January 31 2014.
Mor Weizer, CEO of Playtech, said: “The acquisition of PTTS has been very successful for Playtech with its financial performance exceeding expectations. The acquisition has strategically positioned Playtech as a turnkey service provider for the online gambling industry and provided profitable new revenue streams. It has also enhanced our ability to partner with third parties in regulated markets.”
Speaking to eGR following the signing of the deal in March last year Weizer said PTTS would give Playtech “direct contact with [operators’] players for the first time as well as “direct communication between the operators [its licensees] and their customers”.
PTTS achieved revenues of 90m in 2010. With more than 50,000 affiliates on its network, it is one of the most powerful marketing, acquisition and retention businesses in egaming.