 |
|
|
|
|
|
|
|
|
|
|
|
21 October
2008 Online Gaming
Software Licence Agreement With William
Hill Acquisition of
businesses and assets from affiliates and other
third parties and immediate sale of majority of
these businesses and assets to William
Hill. William Hill
software licence agreement Playtech is to
supply William Hill Online with casino, poker and
other gaming software products (the "William Hill
Online Licence") on a phased basis commencing
January 2009 and culminating in an exclusive
relationship for casino and poker from 1 January
2010. The William Hill Online Licence will run for
a minimum of five years Acquisition of
businesses and assets of affiliates and other third
parties Playtech is to
acquire certain online gaming marketing assets,
businesses and contracts (the "Purchased Assets")
from affiliates and other third parties for a total
consideration of up to $250 million (c.
£144.5m) in cash from existing resources (the
"Acquisition") For the six
months to 30 June 2008, the Purchased Assets
generated combined revenues of $51.4m (c.
£26.0m) and net earnings of $10.4m (c.
£5.3m). These net earnings are growing rapidly
and the current annualised net earnings run rate
for the Purchased Assets is c. $31.0m (c.
£17.9m) Immediate sale
to William Hill Playtech will
immediately sell the majority of the Purchased
Assets to William Hill in return for a 29 per cent.
interest in William Hill's enlarged online
operation ("William Hill Online"). Playtech's
interest in William Hill Online can increase to 32
per cent. depending on certain conditions relating
to the integration William Hill
retains a right to buy out Playtech's interests in
William Hill Online after four and six years on an
independent fair value basis William Hill will
continue to control and operate William Hill Online
William Hill's
pro forma 2008 estimates for the enlarged William
Hill Online business announced today: net revenues
of c. $328.7m (£190.0m) and EBITA of c.
$129.8m (£75.0m) Financial
effects for Playtech Playtech's Board
believes this series of transactions, which are
expected to complete in full in January 2009, will
be significantly earnings enhancing from January
2009 when Playtech will receive: licence income
under the terms of the William Hill Online Licence;
plus a 29 per cent. share of William Hill Online's
profits, a significant amount of which is expected
to be distributed. This 29 per cent. interest was
determined on the basis of the contribution of the
Purchased Assets to William Hill's enlarged online
operation and reflecting a reduction in revenues
currently generated by Playtech from certain of the
Purchased Assets. Playtech's Board
also believes there is the potential to make a
significant future capital gain if William Hill
Online is successful and if William Hill exercises
its buy out rights in relation to Playtech's
interest. Mor Weizer, Chief
Executive Office of Playtech, said: "This series of
transactions is very significant for Playtech. We
are delighted that Playtech is to provide software
to a market leader such as William Hill and believe
that the licence agreement confirms Playtech's
status as the leading software provider to the
global online gaming marketplace. We are excited to
be working with a company that has the scale and
breadth of William Hill. Through these transactions
William Hill's online gaming and sports betting
business will be well positioned for significant
future growth. Whilst William Hill will continue to
manage and control its online business, Playtech,
through our minority interest, will benefit
financially from the future growth of the enlarged
William Hill online operation. This is the first in
a number of other potentially significant earnings
enhancing affiliate acquisition
opportunities." Playtech's
Online
Casino Games
can be played at Mansion
Casino
and Tila
Casino. |
|
|
|
Contact Casino Beacon - Casinos - Privacy Policy Copyright © 2011 CasinoBeacon.co.uk |