Playtech Acquires BGT for €138m In Strategic Acquisition Deal
After missing out on some key strategic acquisitions, online gambling technology powerhouse Playtech has finally managed to spend surplus cash that has been burning a hole in their pocket. Playtech announced that they have acquired Best Gaming Technology (BGT) for €138m in a deal that saw them pay 90% cash upfront for the company.
In terms of the deal Founder and CEO of BGT will hold on to the remaining 10% and will remain with the company for at least three years. Playtech will have the option to acquire the remaining 10% share at a value of 6 x BGT’s 2019 earnings but subject to a €55m cap.
BGT supplies the software for over 24,000 self- service betting terminal (SSBTs) in retail shops. Playtech aims to penetrate the Spanish and Italian markets in which BGT has significant footprints. BGT’s customer base includes some of the largest players in the industry like Paddy Power Betfair, Ladbrokes, Coral, Codere, Betfred and William Hill.
CEO of Playtech Mor Weizer explained the logic behind the acquisition,” We believe that the future of gaming is for retail operators to digitise their offering, creating a simple and intuitive experience for customers as well as creating an opportunity to extend beyond retail and into online, including web and mobile. This follows the same trends we see in other commercial sectors around the world with the modernisation and digitisation of betting shops not only improving the retail experience but also adding a whole new channel as it integrates into an online offering.”
He went on to say that ,” BGT is the leading provider of sports betting software and solutions for gaming and sports betting operators in what is one of the fastest growing verticals of our industry. BGT offers the market’s most sophisticated retail sports solution which is also both modularised and flexible, allowing Playtech to quickly integrate with its own platform.”
As is well known Playtech supplies the technology for what many call the “crack cocaine” of the gambling world, FOBTs. With their intro into the SSBT market, Playtech will according to Weizer “realise the potential of a true omni-channel offering for the benefit of both consumers and operators.”
CEO of BGT, Amin Sageder gave his side of the deal with Playtech,” When I founded BGT in Vienna, Austria, in mid-2005 I had the vision of a high-end provider for the sports betting industry with a focus on self-service systems. Whilst other suppliers focused on online and digital, I focused BGT on land-based technology. Having worked through some challenging years in the beginning, BGT has become the number one sports betting technology provider for land based products worldwide, founded on our goals of making sports betting fun, providing high-end technology, being a reliable partner and offering best in class services to our customers. BGT is at an inflexion point in its development as we penetrate into new markets whilst upgrading our products at a phenomenal speed. I believe that becoming part of the Playtech family will allow Playtech and BGT to take omni-channel to the next level.”