Playtech Signs Deal With NetPlay

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Playtech is a leading online gaming software provider. Its products include Casino, Poker, Bingo, TV and Mobile games. NetPlay provides online and live interactive television gambling operations through brands like Supercasino.com, Bingos.com and EuroTeleMillions. Both Playtech and NetPlay are listed on London's Alternative Investment Market. These two companies issued a joint announcement of a five year partnership deal. As a part of the agreement NetPlay will shift all its brands to Playtech's gambling software platform. In return NetPlay will offer its popular and successful live gaming products to all licensees of the Playtech software.

A statement issued by Playtech elucidated on the benefits that the software provider would get from this agreement. Having NetPlay's bingo operations on its platform will be a major boost to Playtech's bingo platform. Also cross selling NetPlay's live interactive gaming products to its other licensees would establish Playtech as a market leader in the live gaming sector.

Mor Weizer, the Chief Executive Officer of Playtech said that Playtech had been considering entering the live interactive gaming market for some time. Its licensees had identified this as a growth sector based on feedback from their customers. Playtech wanted to provide the best television gaming shows to its licensees and therefore chose to partner with NetPlay. Weizer said, "We are extremely happy to partner with NetPlay TV Plc who are the clear leader in live interactive gaming. We see this agreement as a natural step in Playtech's business strategy of entering into the interactive TV gaming market and further supplements the acquisition last year of interactive mass-multiplayer live gaming assets. We believe live gaming is going to be very big in the coming years and, as such, a significant investment in this business makes perfect sense."

As a part of the deal NetPlay will be raising £12.8 million from the capital market by issuing new shares. The purpose of this issue will be to strengthen the company's balance sheet and provide capital for future growth. The new shares will constitute almost 30% of the enlarged share capital and will be placed with investment company Directforce Trading Limited. The beneficiary of Directforce also has a beneficial interest in a significant shareholder of Playtech Limited.

Martin Higginson, the Chief Executive Officer of NetPlay explained the advantages that his company will derive from this deal. He said, "The investment of £12.8 million into our business, along with the strategic relationship, both in terms of distribution and technology with Playtech, will enable us to drive the development of our converged gaming solutions." Higginson also confirmed Weizer's assessment that live gaming is a high growth product and with Playtech's large customer base NetPlay's live gaming products would reach a wider audience.

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