Playtech acquires strategic stake in Sportech plc
Playtech (AIM: PTEC), the international designer, developer and licensor of software to the online, mobile and land-based gaming industry, announces that Playtech and Sportech plc ('Sportech') have agreed to form a strategic relationship to provide e-gaming solutions to Sportech. Playtech has agreed to subscribe for 19,881,020 ordinary shares of 50p each in Sportech, which will represent 9.99 per cent of the enlarged issued share capital of the UK's leading pari-mutuel football gaming business, and owner of The New Football Pools.
This proposed strategic investment, for approximately £10 million, is part of the £29.2 million capital raising by Sportech to fund its acquisition of Scientific Games Racing ('SGR'), the US-based pari-mutuel and venue management business division of Scientific Games Corporation, (Nasdaq: SGMS) for up to $83 million, as announced by Sportech today. The Company's investment in Sportech is being made at 50p; a discount of 10.71 per cent to Sportech's closing price on Monday 25 January, 2010.
Playtech and Sportech intend to work together to provide Playtech's e-gaming, software products and services to the SGR and Sportech businesses, targeting their combined customer base, notably SGRs global gaming platform and Sportech's internationally recognised pools betting platform. Sportech has significant benefit opportunities regarding its core football pools business which is now strengthened with the addition of SGR's horseracing gaming operations, that has a presence in a wide variety of international jurisdictions.
In addition, the companies will seek further opportunities to complement each other's businesses and brands, including international distribution of the core football pools product.
Playtech's strategic investment follows its announcement detailing the formation of a number of partnerships with New York-based Scientific Games Corporation, the parent of SGR, on 21 January 2010.
Mor Weizer, Playtech's CEO, said: "This is a further significant alliance for Playtech in the growing international regulated gaming arena. Through its acquisition of SGR, Sportech has strengthened its already leading position in regulated pari-mutuel markets by adding horseracing to football - two of the most popular gaming sports in the world. We share many of Sportech's goals in growing our business in regulated markets and look forward to helping the company fulfil its great potential."
"I am also delighted that Scientific Games Corporation, our joint venture partner, is taking a 19.99 per cent stake in the enlarged Sportech group, which further cements our relationship with this impressive international business."
Playtech has the right to nominate one non-executive director to the Board of Sportech and a further announcement will follow.
For further information contact:
|Playtech Ltd||Tel: +44 (0) 20 7861 3232|
| Mor Weizer, Chief Executive |
Shuki Barak, Chief Financial Officer
Ross Hawley, Head of Investor Relations
c/o Pelham Bell Pottinger
|Collins Stewart |
Piers Coombs / Bruce Garrow
|Tel: +44 (0) 20 7523 8350 |
|Deutsche Bank |
|Tel: +44 (0) 20 7545 8000|
|Pelham Bell Pottinger |
David Rydell / Olly Scott / Samantha Boston
|Tel. +44 (0) 20 7861 3232|