Aristocrat Leisure Ltd, an Australian slot machine provider, has always been known for its enormous business appetite. No wonder that it has recently made the AUD$5-billion offer to Playtech Plc, a top gaming content provider for online and land-based casinos. When you play Live Casinos Online in Australia 2021, you can often find both software suppliers in the list of software authors. This blog will be about The AUS$5 Billion Offer Made by the Australian Slot Machine Maker. Just take a look at AussieOnlineCasino.
According to the Aristocrat’s offer, a premium of approximately 58% was added to the last closing price of Playtech. The final deal assumes a business value of AUD$5 billion.
Trevor Croker, the CEO of Aristocrat, claims that the suggested combination would combine the Aristocrat’s top-notch gaming content and Playtech’s global online RMG platform (B2B). As a result, the combined group would create a broad portfolio of end-to-end solutions for gaming customers worldwide. The Playtech deal seems to be complementary by giving an almost 50% contribution to the business well-being.
According to Trevor Croker, the Aristocrat’s proposition will bring together Aristocrat’s high-quality gaming content and regulatory relationship with Playtech’s gaming platform will contribute to the development of an efficient business-to-consumer footprint. If all goes well, the initiative will be taken to the fulfillment in 2022.
The deal will be based on AUD$1.1 billion funding, AUD$2.8 billion lending, and AUD$1.3 billion entitlement. As part of the entitlement offer, Aristocrat will issue around 30 million new shares. This way Aristocrat is expecting the growing earnings per share in the first year.
Aristocrat expects an increased profit of AUD$864 million after tax and amortization. This is 25% more compared to the previous year.
The fact that the pandemic contributes to the acceleration of gambling activities doesn’t surprise anyone. While staying at home, people start looking for alternative forms of time-spending. Online gambling has become a popular solution for many of them.
According to the calculations made by Aristocrat’s developers, Playtech’s business has the overall value of AUD$70 billion. This includes the VGT video lottery terminal business, casino content, and gaming machines.
Aristocrat also estimated when its own Plarium, Product Madness, and Big Fish mobile gaming brands are involved, the company’s final value is worth AUD$80 billion annually. This means that the Playtech deal will take the Aristocrat group’s addressable market to AUD$300 billion every year.
The received offer continues Aristocrat’s intention to invest in medium and long-term growth. The company’s administration is extremely excited by the opportunities that this brings for shareholders, customers, and players. No need to mention all positive changes to come with this kind of “upgrade”. For example, when you play with Katsubet casino withdrawal options, you are looking for some bigger opportunities. You can get them with OnlineCasinoAussie. Or you can expect them from the upcoming cooperation between Aristocrat and Playtech. The upcoming acquisition is subject to Playtech’s majority shareholder approval.
Playtech is one of the more technologically innovative representatives of the gambling industry and an australian slot machine. No wonder that Aristocrat is interested in more intense cooperation with the provider. In the end, Playtech’s Snaitech business has sufficient resources to strengthen Aristocrat’s position in the international arena.
