Statement re William Hill Online

RNS Number : 9686Y

Playtech Limited

01 March 2013

 



 Playtech Limited

("Playtech" or the "Company")

Statement re William Hill Online

Playtech, (LSE: PTEC) the international designer, developer, licensor and provider of software and services for the online, mobile, TV and land-based gaming industry, announces that it has been informed by William Hill Plc ("William Hill") that it will exercise its call option to acquire Playtech's 29% stake in William Hill Online.

Following completion of a valuation process, Playtech's stake will be acquired for approximately £424 million, representing a multiple of approximately 11.5 times normalised 2012 EBITDA. Playtech will continue to be entitled to a proportionate share of the FY2013 profits of William Hill Online, until the date of completion. Playtech has elected to receive the consideration entirely in cash. William Hill must complete the acquisition by the end of April 2013.

William Hill Online was formed in December 2008 when Playtech injected assets then worth €177.7 million into William Hill's existing interactive operations. This transformational transaction created an innovative and exciting gaming business, which has grown very strongly since inception. William Hill Online is now one of the world's leading online gaming operators, consistently returning annual double-digit growth. To 31 December 2012, Playtech's total share of profits of William Hill Online (excluding software royalties) has been approximately €140.0million.

Playtech's software arrangements with William Hill Online will continue following completion of the call option. William Hill Online has been a key driver of William Hill's overall success and, as the major technology supplier to it, Playtech is dedicated to maintaining a close working relationship to support William Hill Online's continued growth, and looks forward to benefiting from its future success.

Playtech is undertaking a broad review of the most effective use of the proceeds from the disposal, taking into consideration both feedback from shareholders and the Company's requirements going forward. The Board will, amongst other things, be assessing the potential for further value-enhancing acquisitions, joint ventures and partnerships, with a focus on regulated markets, together with the possibility of a return of capital to shareholders.

Mor Weizer, Playtech's Chief Executive Officer, said: "William Hill Online has been an overwhelming success and has delivered a cash return to Playtech greater than 3.5 times its original investment, excluding software royalties in the four years since inception. The success demonstrates the potential to create value by combining a well-established brand with Playtech's best of breed technologies, products and services. I would like to thank the William Hill and William Hill Online management team for their efforts, and we look forward to our strong supplier relationship continuing."

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For further information contact:

Playtech Ltd Mor Weizer, Chief Executive Officer Ron Hoffman, Chief Financial Officer c/o Pelham Bell Pottinger Adam Kay, Head of Investor Relations	[phone] [phone]
Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough	[phone]

About Playtech

Playtech develops unified software platforms and content for the online and land-based gaming industry, together with providing a range of ancillary services such as marketing, hosting and CRM services.

The Group's capabilities enable the delivery of an integrated software or turnkey solution, with players accessing online, broadcast, mobile and server-based gaming terminals through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land-based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in newly-regulated markets.

Founded in 1999, Playtech is listed on the London Stock Exchange and has over 2,500 employees located in development centres in five countries.  Its leading gaming applications include casino, poker, bingo, sports betting, live, mobile and social gaming, casual and fixed odds games.

www.playtech.com

 

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