Playtech, founded by Teddy Sagi, acquired for $3.7b

Teddy Sagi Photo: Yonatan Bloom

Australian gambling machine manufacturer Aristocrat Leisure is paying a 58% premium for the online software platform for gambling sites.

Online software platform for gambling sites Playtech plc (LSE: PTEC), which was founded 22 years ago by Israeli billionaire Teddy Sagi, has been sold to Australian gambling machine manufacturer Aristocrat Leisure for $3.7 billion. The deal reflects a 58% premium above the share's market price yesterday.

Three years ago, Sagi sold his remaining holdings in Playtech and ceased to be a party in interest in the company.

Playtech has been traded for the past 15 years on the UK stock market, and the share was trading on the main London Stock Exchange (as of yesterday) at a price per share of £4.292. The Australian company will acquire Playtech at a price of £6.8 per share. Since its IPO, Playetch's share price has risen 140% and it is currently up 55% on the London Stock Exchange today.

Since its IPO, Playtech has been managed by CEO Mor Weizer, who was appointed by Sagi, and many of the other senior managers are Israelis.

Aristocrat Leisure CEO Trevor Croker said, "The merged company will offer an extensive portfolio of end to end solutions for customers in the gaming industry throughout the world, which will be based on gaming responsibility and innovation,"

Among other things, the Australian company is banking on Playtech's Italian subsidiary Snaitech, which will open up additional markets in Europe for it, while at the same time opening up markets in North America, in to which Playtech has entered with great success.

Playtech ended the first half of 2021 with revenue of €457.4 million and adjusted EBITDA of €124.1 million - a substantial improvement of 13% compared with the first half of 2020.

Published by Globes, Israel business news - en.globes.co.il - on October 18, 2021.

Copyright of Globes Publisher Itonut (1983) Ltd. 2021.

Teddy Sagi Photo: Yonatan Bloom
Teddy Sagi Photo: Yonatan Bloom
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