International edition
October 20, 2021

This series of transactions are expected to complete in full in January 2009

Online gaming software license agreement between Playtech and William Hill

(UK).- Playtech announced the acquisition of businesses and assets from affiliates and other third parties and immediate sale of majority of these businesses and assets to William Hill.


laytech is to supply William Hill Online with casino, poker and other gaming software products on a phased basis commencing January 2009 and culminating in an exclusive relationship for casino and poker from 1 January 2010. The William Hill Online License will run for a minimum of five years.

Playtech is to acquire certain online gaming marketing assets, businesses and contracts from affiliates and other third parties for a total consideration of up to us$ 250 million in cash from existing resources.

For the six months to 30 June 2008, the Purchased Assets generated combined revenues of us$ 51.4 million and net earnings of us$ 10.4 million. These net earnings are growing rapidly and the current annualized net earnings run rate for the Purchased Assets is us$ 31 million.

Playtech will immediately sell the majority of the Purchased Assets to William Hill in return for a 29 % interest in William Hill’s enlarged online operation. Its interest in William Hill Online can increase to 32 % depending on certain conditions relating to the integration.

William Hill retains a right to buy out Playtech’s interests in William Hill Online after four and six years on an independent fair value basis. William Hill will continue to control and operate William Hill Online. Its pro forma 2008 estimates for the enlarged William Hill Online business announced today: net revenues of us$ 328.7 million and EBITA of us$ 129.8 million.

Playtech’s Board believes this series of transactions, which are expected to complete in full in January 2009, will be significantly earnings enhancing from January 2009 when Playtech will receive: license income under the terms of the William Hill Online Licence; plus a 29 % share of William Hill Online’s profits, a significant amount of which is expected to be distributed.

This 29 % interest was determined on the basis of the contribution of the Purchased Assets to William Hill’s enlarged online operation and reflecting a reduction in revenues currently generated by Playtech from certain of the Purchased Assets.

Playtech’s Board also believes there is the potential to make a significant future capital gain if William Hill Online is successful and if William Hill exercises its buy out rights in relation to Playtech’s interest.

Mor Weizer, CEO of Playtech, said: “This series of transactions is very significant for Playtech. We are delighted that Playtech is to provide software to a market leader such as William Hill and believe that the license agreement confirms Playtech’s status as the leading software provider to the global online gaming marketplace. We are excited to be working with a company that has the scale and breadth of William Hill.”

“Through these transactions William Hill’s online gaming and sports betting business will be well positioned for significant future growth. Whilst William Hill will continue to manage and control its online business, Playtech, through our minority interest, will benefit financially from the future growth of the enlarged William Hill online operation.

This is the first in a number of other potentially significant earnings enhancing affiliate acquisition opportunities.”

What is your opinion about this article?
  • I like it
    0 votos
  • I don't like it
    0 votos
  • I have not thought about it
    0 votos
Leave your comment
Newsletter Subscription
Subscribe to receive the latest news and updates
Enter a valid email
Complete the captcha
Thank you for registering to our newsletter.
Follow us on Facebook