Software and services developer Playtech has completed the acquisition of a 29 per cent stake in betting group William Hill Online.
The acquisition was made for £423.75m on a cash-free and debt-free basis, delivering a cash-on-cash return of more than 3.5 times. The sum is subject to a post-completion working capital adjustment, which will enable Playtech to receive its share of profit accrued since the start of the year and to reflect unpaid dividends.
Ralph Topping, Chief Executive of William Hill, said: "William Hill Online has consistently delivered strong net revenue growth since it was formed in December 2008. We are pleased to be assuming full ownership of this attractive, high growth, high performing business."
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Playtech is expected to incur exceptional costs of around £3.0m in 2013, relating to advisory and valuation fees.
William Hill's online division was formed at the end of 2008 after Playtech injected assets into William Hill's existing interactive operations. The now an international leader in online gambling operators.
Shares in Betfair rose 10.65% to 774p, while shares in Playtech declined 0.33% to 602p, by 12:47 Monday.
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