Discounted initial payment for PTTS completed
Playtech Limited
('Playtech' or the 'Company' or the 'Group')
Discounted initial payment for PTTS acquisition completed
Playtech (AIM: PTEC), the international designer, developer and licensor of software and services provider for the online, mobile and land-based gaming industry, announces that it has agreed to bring forward payment of the remaining initial consideration due on its acquisition of PT Turnkey Services Limited ("PTTS") in return for a discount of EUR4.2 million.
Transaction highlights
§ Consolidation of outstanding instalments of initial consideration of EUR80.2m into one accelerated payment of EUR76m, representing a nominal discount of 5.2%
§ Payment to be funded from the Group's existing debt facilities
§ Represents a discount to the net present value of the total outstanding payment using the Group's actual borrowing rate
§ Strong performance of PTTS business since acquisition
§ Consolidation of payments represents a Related Party Transaction under AIM Rules for Companies
Initial payment for PTTS acquisition completed
Pursuant to the acquisition of PTTS, which was announced on 10 March 2011, the Company agreed to pay Worldwide Online Enterprises Limited ("WOE") an initial cash consideration of EUR140 million (the "Initial Consideration") in broadly equal, non-interest bearing half-yearly instalments over the 30 months following completion of the acquisition in July 2011.
Playtech has agreed with WOE to aggregate the outstanding balance of the Initial Consideration into one payment of EUR76 million, (the "Discounted Initial Consideration") which reflects a discount to the net present value of the outstanding balance. Playtech is utilising part of its available banking facilities in order to finance the payment of the Discounted Initial Consideration.
This Discounted Initial Consideration will not affect any amounts which may become payable under the earn-out provisions agreed at the time of the acquisition of PTTS, (defined as the Additional Consideration in the announcement of 10 March 2011).
The Board believes this transaction is prudent and makes economic sense. PTTS's performance since acquisition has been very strong and the first quarter of 2012 has been outstanding. As a result, there is an increased likelihood of payment of the Additional Consideration to WOE of EUR140 million, in accordance with the original terms of the acquisition. Partly as a result of this strong performance, Playtech anticipates being able to repay the banking facilities drawn for the Discounted Initial Consideration within a short period of time.
The monies raised as part of the GBP100 million equity placing announced in November 2011 will not be used for the settlement of the Discounted Initial Consideration, therefore remaining available for investment in further acquisitions and joint ventures.
The vendor in the PTTS transaction, WOE, is a Related Party as defined by the AIM Rules for Companies, and the Directors of the Company, having consulted with its Nominated Adviser, consider that the terms of this transaction are fair and reasonable insofar as shareholders are concerned.
- Ends -
Further information
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Playtech Ltd Mor Weizer, Chief Executive Officer David Mathewson, Chief Financial Officer c/o Pelham Bell Pottinger
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+44 (0) 20 7861 3232
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Canaccord Genuity Limited Piers Coombs / Bruce Garrow
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+44 (0) 20 7523 8350 |
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Pelham Bell Pottinger David Rydell / Olly Scott / Guy Scarborough
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+44 (0) 20 7861 3232 |
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.
Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. 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 has some 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies, together with 900 employees providing ancillary services.
This information is provided by RNS
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