Playtech still eyeing further acquisitions
Software supplier continuing to assess potential M&A activity with regulated markets high on its agenda
Playtech remains on the look-out for potential acquisitions in regulated markets as it looks to put its 500m war chest to good use, company chairman Alan Jackson said at this morning’s AGM.
CEO Mor Weizer publicly confirmed the company’s ambition for bolt-on acquisitions in August last year and since then the group has been linked with bids for companies such as the Health Lottery, however no deal has been confirmed since last July’s acquisition of PokerStrategy.
Playtech is currently sitting on a 527.4m cash balance after paying out 188m in exceptional and ordinary dividends for 2013, and Jackson said the firm was still committed to finding value-enhancing deals in the market.
Jackson added the board was confident it would be able to replicate the success it has recorded with its previous deals, including last July’s acquisition of PokerStrategy and the “transformative” deal with William Hill.
While deals in regulated markets will continue to be a key focus, Jackson also said the company “remains optimistic for future development in other markets” and added that Playtech would continue to keep “a close watch on appropriate legislative developments” in the US market.
“Given the cash-generative nature of Playtech’s business and its existing cash resources, the Board, with its advisers, continues to review the most effective user of the Company’s cash resources, assessing the potential for further value-enhancing acquisitions, joint ventures and partnerships, particularly focusing on regulated markets,” Jackson said.
Playtech announced several new licensees in the last few months including Holland Casino ahead of the Dutch market’s re-regulation, and was one of five suppliers shortlisted for the potentially lucrative OPAP contract which was eventually landed by GTECH.