laytech has signed a non-binding memorandum of understanding regarding the potential acquisition of certain B2B real money gaming and B2B social media assets and businesses and a related equity participation in a B2C venture with entities in which Teddy Sagi is beneficially interested. Sagi is beneficially interested in Playtech's largest shareholder, Brickington Trading Limited.
The Memorandum of Understanding was signed in relation to the group's intention to acquire certain assets and businesses including those enabling the Group's entrance into the social gaming market, but said deal would be subject to a vote by shareholders.
At the same time it also announced it had signed a further non-binding memorandum of understanding with Sagi to provide advisory services to the company for a nominal fee of one euro a year. "Playtech has been monitoring social gaming activity operated by various companies through social networks and mobile platforms and has been analysing a number of ways to penetrate the social gaming arena," it said in a statement.
"By completing the intended transaction, Playtech would gain access to a broad range of social gaming platforms and products and believes it would be uniquely positioned as a leading B2B provider with the ability to supply cross platform capabilities for a full suite of products including social casino, poker, bingo and rummy."
If the deal goes through Playtech will receive a 20% stake as a result of the transaction, creating an additional earnings stream for the group in one of the fastest growing segments in the gaming industry, the company said.
The outline terms provide for the acquisition of the B2B elements of various businesses and assets that were acquired by entities in which Teddy Sagi is beneficially interested following the completion of the Group's acquisition of PT Turnkey Services Limited. These businesses include 'play for real' gaming assets and products, in addition to social gaming products with incorporation of real money purchase by end users of virtual currency, such as Facebook credits.
The assets which are the subject of the intended acquisition include the following: Social gaming, social gaming platform including backend capabilities, social poker, social casino and casino content, social rummy, social bingo. It also includes: Play for real: End-to-end online casino software, integration platform and casino games content; Mobile poker software (both Native (iOS and Android) and HTML5); Mobile casino software (both Native (iOS and Android) and HTML5) and Poker (real money) software.
The consideration for the intended acquisition is expected to be 95 million euros, payable by the Group in one or more tranches at a time of the Group's choosing following completion. Any outstanding balance from an initial payment on completion will accrue interest at a competitive market rate.