Playtech confident of "next level" acquisition by H1 2015
Weizer reiterates firm's desire to spend its war chest on major acquisition and says company has "engaged with certain companies"
Playtech CEO Mor Weizer said the firm expects to make an acquisition that will “take Playtech to the next level” by H1 next year.
Speaking after the firm reported its “strongest ever” quarterly results this morning, Weizer confirmed the company had been identifying potential targets and had begun discussions with “certain companies”.
“We did identify and in some cases have even engaged with certain companies, the process is underway but given the size of the acquisition we are aiming at and the cash position of the company, we have to be highly confident that this is the right strategy the market expects but more importantly the right deal for the company,” Weizer said.
And Weizer said that while deals “have a life of their own” and take time, he would be disappointed if the firm had not made progress by the first half of next year.
“And that’s me being very conservative. The right timing to do a deal is towards the end of this year and beginning of next because of regulatory changes in the UK, which will put pressure on people and put them in the right position to do a deal,” he added.
The supplier has amassed cash reserves of 402.4m despite spending to acquire a 33.3% stake in bingo provider BGO as well as Aristocrat’s lottery business earlier this year, with speculation continuing to mount as to what it intends to spend the balance on.
Playtech’s chief executive refused to be drawn on potential targets but did refuse to rule out a move for a B2C operator, stating that any deal would that “represents an opportunity for significant growth” would be considered.
The supplier’s share price rose 6.7% in early trading to 749p.