Playtech now has three buyout offers on the table


Posted on: Nov 20, 2021, 2:30 a.m.

Last update on: November 20, 2021, 05:58 a.m.

Gaming technology provider Playtech has landed another takeover offer courtesy of JKO Play Ltd., a consortium led by former Formula 1 team owner Eddie Jordan.

Playtech auction
Former Formula 1 team owner Eddie Jordan has reportedly made an offer for Playtech. That makes three offers for the gaming tech company. (Image: The Guardian)

All told, Playtech, which makes software for online casinos, online poker rooms, and online sports betting, has three deals on the table. Last month, the company struck a $ 2.8 billion deal with Aristocrat Technologies, one of the world’s largest manufacturers of gaming machines. The Board of Directors of Playtech recommends that investors accept this offer.

JKO told Playtech that it is in talks with New York-based investment firm Centerbridge Partners LP and other parties to explore financing for a possible offer, Playtech said Wednesday evening. Discussions with JKO were at an early stage and there was no certainty that they would result in an offer, he added. reports Reuters.

The other Playtech acquisition proposal is that of Gopher Investments, the company’s second largest shareholder. Earlier this year, Gopher attempted to acquire the Finalto unit from Playtech, entering into a bidding crash with Finalto management in the process.

Jordan linked to previous game takeover rumors

Jordan, the former owner of a Formula 1 (F1) team bearing his last name, was linked to some speculation about the gaming industry’s mergers and acquisitions earlier this year.

In July, reports surfaced that the Irish businessman was considering an offer for the OpenBet sports betting platform business of Scientific Games (NASDAQ: SGMS). This unit was sold in September to Endeavor Group Holdings, Inc. (NYSE: EDR), the parent company of the Ultimate Fighting Championship (UFC), for $ 1.2 billion in cash and stock.

Interestingly, Keith O’Lauhglin – a former Scientific Games executive – is Jordan’s partner at JKO. The firm has confirmed that it plans to run at Playtech.

Playtech also provides software for fixed odds arcade games, online games and provides services for scratch cards. It was founded in Estonia over two decades ago and is headquartered on the Isle of Man. Aristocrat’s courtship show with Playtech aims to bolster its offerings in the fast growing sectors of iGaming and regulated sports betting.

What’s next for Aristocrat

Aristocrat says he’s still working with Playtech to secure the deal and the regulatory process is moving forward. The suitor had previously highlighted the benefits of acquiring the UK-based tech company.

The operation could “To deliver medium-term revenue and profit growth, particularly in the fast-growing North American real money online gaming (RMG) segment in North America, by combining Aristocrat’s leading gaming content, relationships long-term customers and regulators with Playtech’s technology and platform ” Aristocrat said in a statement announcing his offer.

The Reuters the article did not state what JKO’s offer was for Playtech. He also didn’t mention the possibility of Aristocrat increasing his bid for the target.

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