Playtech buys mobile betting co Mobenga for €23.8m

Teddy Sagi's company will finance the acquisition from its cash resources.

Playtech Cyprus Ltd. (AIM:PTEC), controlled by Teddy Sagi, has acquired Swedish mobile sportsbook betting company Mobenga AB for up to €23.8 million, and expanded its contract with British online games operator Gala Coral.

Playtech will initially pay €8 million for Mobenga, and pay up to an additional €15.8 million based on a six-fold multiple Mobenga's pretax profit in 2013. Playtech will finance the acquisition from its cash resources.

Mobenga mobile solution enables sports bets via smartphones and tablets, including Apple iOS, Android and HTML.

Playtech CEO Mor Weizer said, "Recent developments in mobile gaming are increasingly important in driving player acquisition and delivering demonstrable revenue streams. Sports betting has always been the core product for many operators - one which creates different cross selling opportunities to other gaming products. This deal will position Playtech as the leading mobile gaming provider to take best advantage of the growth in mobile gaming and to integrate sports betting alongside its existing mobile casino, poker and bingo offerings, providing the operators the ability to offer a complete multi-product mobile gaming solution."

In the Gala Coral deal, Playtech will provide its technology platform and gaming products, beginning in 2012. The company did not disclose the size of this deal. Gala Coral operates in the UK and Italy. Gala Coral's 6,500 gaming terminals currently use Playtech's Videobet software and will migrate to its Virtue Fusion platform.

Playtech also published provisional second quarter financial data today. Revenue rose 7% to €39.6 million from €36.8 million for the corresponding quarter of 2010. The company reported its first material revenue of €2 million from its Videobet business.

Weizer said, "It has been a very positive quarter for Playtech, continuing a solid start to 2011 and included both the finalization of Videobet's UK roll-out and the completion of the PT Turnkey Services Ltd. acquisition."

Playtech's share price rose 8.4% on London’s Alternative Investment Market (AIM) to ₤3.67, giving a market cap of ₤820 million.,

Published by Globes [online], Israel business news - - on July 20, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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