Gambling software firm Playtech Plc. has announced a $3.7-billion takeover by slot-machine maker Aristocrat Leisure Ltd., Bloomberg reported.
- The takeover valued Playtech at 680 pence or $9.35 apiece, up 58% from the firm’s closing price on October 15, with online gambling gaining traction amid deregulations across the globe, especially in the United States.
- Analysts said the offer is the latest case of incumbents moving to boost their technological advancements to capitalize on the online market, as the global gaming sector indicates near-constant consolidation.
- Playtech tapped Wells Fargo & Co., Goodbody, and Jefferies Financial Group. for the transaction, while Aristocrat is working with the Goldman Sachs Group.
Shares in the British firm jumped by nearly 60% after the announcement. PTEC is up 58.08%, while ALL was flat at Friday’s close.