Aristocrat to buy Playtech for $3.7bn

Australian slot-machine maker Aristocrat Leisure Ltd has agreed to buy British gambling software developer Playtech Plc for A$5 billion (US$3.7 billion).

“The offer values London-listed Playtech at 680 pence ($9.35) per share, a premium of about 58% to the company’s last closing price on Oct 15,’’ Aristocrat said in a statement yesterday.

“Aristocrat will raise A$1.3 billion in a share sale to help fund the acquisition,’’ the Sydney-based company said.

The deal will add immediate scale to the Australian casino-machines manufacturer in the fast-growing world of online gaming and sports betting, that it estimates was worth $70 billion globally last year.

“The transaction will create one of the largest business-to-business platform providers in the global gaming industry,’’ Aristocrat said.

“The combined group would offer a broad portfolio of end-to-end solutions for gaming customers around the world, as well as seamless player experiences, underpinned by a shared focus on responsible gameplay and innovation,” Aristocrat chief executive Trevor Croker said.

The deal would mark the latest in a long list of tie-ups aimed at staking out an early advantage in online gambling, which was already deregulating across the United States before new the number of new players exploded during pandemic lockdowns.

Dealmaking in the industry has also been on a tear.

Ireland’s Flutter Entertainment Plc bought Stars Group Inc in Canada in 2020, and earlier this year casino operator Caesars Entertainment Inc acquired Britain’s William Hill Ltd.

In one of the biggest deals in the industry, DraftKings Inc in September offered to acquire UK gambling company Entain Plc — owner of Ladbrokes and Coral — for about US$22.4 billion.

Elsewhere, Bally’s Corp is in the process of buying Gamesys Group Plc.

Playtech was founded by the Israeli entrepreneur Teddy Sagi in 1999.