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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
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.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the USMedium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.
