Playtech Seeking Aggressive Acquisitions In 2008
Leading online gaming software developer, Playtech, has revealed its intent to take an aggressive stance towards acquisitions in 2008. The company began a substantial acquisitional conquest in late 2006, and appears to have heightened its efforts, according to a recent interview with Financial Times.
"Playtech is to pursue an 'aggressive' acquisition strategy after the world's largest publicly traded online gaming software supplier enjoyed strong growth towards the end of last year," the article stated.
CEO of Playtech, Mor Weizer, commented on the rapid growth of the online gaming software company, which currently licenses online poker rooms such as VC Poker, Paddy Power Poker and Blue Square Poker. Online poker operations for Playtech currently make up a substantial 30% of the company's annual revenue. Playtech also licenses its software to online casinos, online bingo halls, mobile gaming and live-gaming operators.
Playtech is the host of the European Championship of Online Poker (ECOOP), which awarded a whopping $2.5 million in its last rendition, in December of 2007. The success of the ECOOP saw Playtech achieve record levels in terms of monthly sales.
According to eGaming review, Playtech is currently seeking the acquisition of Virtue Fusion, an online bingo software provider. The acquisition of Virtue Fusion would be no small matter as the company provides backend software for major online bingo operations, including William Hill, Mecca and Bet365.
The ambitious approach of the online gaming software provider began immediately after the United States passed the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, with the acquisition of Tribeca Tables. The $75-million USD purchase awarded Playtech an assortment of licensees, including the online poker rooms mentioned above (VC Poker, Paddy Power Poker and Blue Square Poker).
In addition, the Financial Times report revealed that Playtech is seeking licensee in the Spanish and Italian online gaming markets. Apparently, Playtech has already signed an agreement with a major Asia-facing online gaming operator to be launched before the end of the first 2008-quarter, though the name has yet to be revealed. Licensing to yet another Asian-facing online gambling operation is awaiting approval by regulators before announcements are made.