Playtech Acquires Ash Gaming

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The Playtech virtual juggernaut is rolling on unabated. Earlier this year Playtech had announced a 10 year deal to be the sole software provider to Gala Coral. It was then stated that the assortment of games suppliers to Gala Coral would shortly discontinue their services. One of these independent software providers was Ash Gaming. Now, the leading casino software provider, Playtech, has announced that it has acquired Ash Gaming. The consideration to be paid by Playtech for Ash Gaming is £23 million.

Ash Gaming is Playtech's fourth acquisition this year and its tenth acquisition overall. The London based Ash Gaming was founded by Chris Ash in 2002. The casino software company has grown substantially since then and currently employs forty people. Its profits doubled to £2.6 million in the twelve month period in its last full year report. Ash Gaming has exhibited a strong revenue and EBITDA growth profile with accelerating run-rate. Playtech will make an initial payment of £15.5 million and the remaining £7.5 million will be paid over a period of three years and will be linked to the future results.

Chief Executive Officer of Playtech, Mor Weizer, said that he is thrilled at this acquisition. Ash Gaming has a wonderful reputation for delivering excellent and innovative online casino games to over 30 licensees, which include names like Virgin Casino. It is one of the fastest growing interactive gambling and betting games developers globally, with a particularly strong presence in the United Kingdom. Weizer added that Playtech has known the Ash Gaming team for a considerable time would derive substantial benefits in terms of expertise and knowhow as well as additional revenue streams. Playtech also has plans to extend Ash Gaming's games to the numerous online casinos operating on its software platform. Some of the most popular Ash Gaming titles are Midas Millions, Madness House of Fun and X Factor slot machines. Weizer said, "We see this as complementing our strategic actions by ensuring class leading content alongside our leadership in technology. Together this makes a powerful combination and by owning significant games content we will maximize both revenue and earnings across the value chain" Playtech's share price rose 1% on the London Stock Exchange as a result of this announcement.

The payments to be made to Ash Gaming and funds for financing other new ventures will come through raising £100 million from ordinary shareholders by offering additional 46,511,627 shares. The resolutions giving effect to this proposal received approval of the shareholders at the company's general meeting. The approval came despite recommendations from leading City analyst Ivor Jones of Numis Securities that shareholders vote against the agreement, which would give billionaire founder Teddy Sagi more control in the company.

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