Playtech moves ahead in B2B Social Gaming

  • 12th June, 2012 | Isle of Man | Playtech – Video
  • PlaytechThe world’s largest publicly-traded software supplier to the gaming industry, Playtech announces the completion of three “related party transactions” with founder and majority shareholder Teddy Sagi.

    The company will have spent around £385m to acquire businesses from Sagi should the company end up paying the full €280m consideration for affiliate marketing business PTTS, acquired last year.

    Playtech has completed agreements to license software and lease two London buildings from companies in which Sagi has also been appointed as an advisor.

    The deals will enable Playtech to license real money gaming software, social gaming and real-money mobile software from Skywind Holdings, a company also linked to Sagi. Playtech will pay an annual licence fee of €6m and 20 percent royalty on revenue generated through the use of the software in social gaming activities.

    Playtech unveiled that social gaming assets were already being deployed in a B2C operation boasting over 1.5m active monthly active users playing Facebook games including Slotsfarm and Raminoz.

    Mor Weizer, CEO of Playtech, commented, “The Skywind software licence delivers a cost effective entry into social gaming” for the company to “offer a comprehensive and innovative solution to online gaming operators wishing to access the social gaming market and strengthen their mobile offering.”

    Playtech will also pay two Sagi-related companies, Anise Developments and Anise Residential Ltd a total of £750,000 a year to lease 10,000 sq.feet of office space and nine furnished apartments in London, currently occupied by Playtech subsidiary GTS.

    The software licensing deal is worth at least £14.5m (€18m) to Sagi’s companies under the intial three-year term of the software licensing agreement and £3.75m over the five-year term of the office leasing arrangement, meaning Sagi’s companies stand to make at least £18.25m from the transactions.

    Playtech’s directors say they have identified significant potential in both the newly presented social gaming market and a cross-platform model with traditional real money gaming, with existing licensees and other third parties having expressed an interest in working with Playtech as part of their own entrance into the social gaming arena.

    “Social gaming offers exciting growth opportunities for real money gaming organisations to apply their technological and marketing expertise,” added Weizer, “We will offer a comprehensive and innovative solution to online gaming operators wishing to access the social gaming market and strengthen their mobile offering. Similarly we will enable social gaming companies to access a full suite of products in social and real money gaming.”

    About Playtech
    Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

    Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface – the IMS.

    The company’s capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account. New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries and new entrants making their online gaming debut.

    Founded in 1999, Playtech has some 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services.

    More Information
    Playtech “Source of Success” – Playtech.com