US casino developer Playtech Plc has agreed to buy Australian slot machine maker Aristocrat Leisure Ltd. for A $5 billion $3.7 billion None Google s Biggest Moonshot Is Its Search for a Carbon-Free Future?
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The offer values London-listed Playtech at 680 pence $9.35 per share, a price of about 58% to the last closing price on Oct. 15, Aristocrat said in a statement on Monday. Shares of Playtech rose to 675 rupees on Monday, as much as 57% the previous week.
The Sydney-based firm will raise A $1.3 billion in a share sale to help fund the acquisition, the Aristocrat said. The stock will be sold at an 8.6% discount to the closing price of Friday.
The deal will add instant scale to the Australian casino manufacturer in the growing world of online gaming and sports betting, which is estimated to have cost $70 billion in 2013. The transaction will create one of the largest businesses to business platform providers in the global gambling industry, Aristocrat said.
The combined group would offer a broad portfolio of end-to-end solutions for gaming customers around the world, as well as seamless player experiences, backed by a shared focus on responsible gameplay and innovation, said Aristocrat Chief Executive Officer Trevor Croker.
The deal would mark the latest in a long list of tie-ups aimed at staking out an early advantage in online gambling, which was already deregulated across the U.S. before new the number of new players exploded during pandemic lockdowns.
Aristocrat expects Playtech s Italy-based omnichannel gambling operator Snaitech to open new market at the same time as business in North America continues to boom, the company said.
The Aristocrat received letters of intent or irrevocable undertakings in support of the deal from investors that own about 20.7% of Playtech's outstanding shares, including its biggest owner, it said.
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