Playtech to enter social gaming arena

Online software development firm Playtech is to splash €95m on "certain B2B real money gaming and B2B social media assets" as it looks to enter the social gaming arena.

The undisclosed assets are to be bought from a company linked to Teddy Sagi, Playtech's largest shareholder.

The company has signed a non-binding memorandum of understanding regarding the potential acquisition but said deal would be subject to a vote by shareholders.

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At the same time it also announced it had signed a further non-binding memorandum of understanding with Sagi to provide advisory services to the company for a nominal fee of one euro a year.

"Playtech has been monitoring social gaming activity operated by various companies through social networks and mobile platforms and has been analysing a number of ways to penetrate the social gaming arena," it said in a statement.

"By completing the intended transaction, Playtech would gain access to a broad range of social gaming platforms and products and believes it would be uniquely positioned as a leading B2B provider with the ability to supply cross platform capabilities for a full suite of products including social casino, poker, bingo and rummy."

If the deal goes through Playtech will receive a 20% stake as a result of the transaction, creating an additional earnings stream for the group in one of the fastest growing segments in the gaming industry, the company said.