Playtech (AIM: PTEC), the listed international designer, developer and licensor of software for the online and land-based gaming industry, is pleased to announce today that it has agreed to acquire certain assets and undertaking of Tribeca Tables Europe Limited ("Tribeca"). The acquisition is subject to the satisfaction of a number of conditions.
Tribeca is a software designer that provides a poker network solution to a number of the world's most respected online poker operators such as VCPoker, PaddyPower Poker and Blue Square Poker. In addition to software development, Tribeca also specialises in e-marketing and the development of online poker communities. Most recently, Tribeca announced that the Tain poker network would be joining the Tribeca network, of which the Scandinavian group, Expekt, is the largest customer.
In the 12 months to 31 December 2005, the assets to be acquired generated turnover of c. US$6.2m and gross profits of c. S$5.3m and in respect of the last three calendar months preceding the date of the acquisition, the assets to be acquired generated a turnover of c. US$3.9m and gross profits of c. US$3.4m.*
Following Tribeca's decision to block certain territories, including the US, the entire Tribeca network will cease its operations n six months from the date of the agreement, by which time the migration of the online poker operators to Playtech's platform is planned to be complete.
Playtech expects that synergies between the two companies will lead to significant savings in respect of the additional costs involved in supporting the migrated licensees. Additionally, the Company expects higher revenues to be generated by the ncreased player liquidity, as well as the introduction of Playtech's casino games to the migrated licensees.
The acquisition significantly strengthens Playtech's share of the global online poker gaming market and is in line with the ompany's continued strategy to diversify its portfolio and geographical reach.
*Unaudited Figures provided by Tribeca.
Avigur Zmora, Chief Executive Officer of Playtech, comments:
"This is a landmark deal for Playtech, which in one move, transforms the Company into the world's leading poker network that excludes US players. Tribeca is an outstanding fit for us and the company's licensees are operating, for the most part, in different geographical locations to Playtech's current poker licensees.
"We look forward to welcoming Tribeca's licensees and offering them the best combination of poker knowledge and world leading technology. Both Tribeca and Playtech are committed to a smooth transitional period to ensure that migrating licensees can continue to offer the most attractive poker environment for their players."
Further details of the acquisition
The consideration for the acquisition is calculated according to a formula based on Playtech's earnings from the acquired assets. On the basis that the Company will generate c. US$16m over the coming year from the migration date, the consideration to be paid for Tribeca will be US$75m. The final consideration will be adjusted upon Playtech's realised evenues. The maximum consideration that the Company will be liable to pay is US$139m, which will be paid in the event that the revenue generated from this acquisition exceeds US$29m over the coming year from the migration date.
Playtech will pay the consideration in cash in four instalments. The first is payable upon satisfaction of specific conditions. he second, third and fourth payments are to be made on the 9th, 18th and 24th month intervals, after the date of the agreement, respectively.
For further information:
Avigur Zmora, Chief Executive Officer, Playtech Limited
c/o Bell Pottinger Tel: 020 7861 3232
www.playtech.com
David Rydell / Amy Rajendran
Bell Pottinger Corporate & Financial Tel. 020 7861 3232
About Tribeca Tables Europe, Limited:
Tribeca Tables Europe, Limited is registered in the Channel Island of Alderney.
Founded in 2001, Tribeca is the world's first online poker room aggregator.
Today, Tribeca Tables is partnered with 10 major gaming companies and supports
over 100 brands with millions of customers.
Tribeca received corporate finance advice from McNamee Lawrence & Co. LLC and
Montrose Partners LLP.
Playtech Limited
Playtech develops unified software platforms for the online gambling industry,
primarily targeting existing online operators wanting to upgrade their system;
sports books looking to diversify and land-based operators making their online
debut.
Playtech gaming applications include online casino, poker, bingo, live gaming,
land-based kiosk networks, fixed-odds games and video betting terminals.
Founded in 1999, Playtech has over 300 personnel located globally.
The Company listed on the AIM market in March 2006.
Although a restraining order on the implementation of the Unlawful Internet Gambling Enforcement Act...
Israeli poker player Ziv Bachar from Tel Aviv survived an initial starter field of 186 players in th...
It is online appropriate that the Internet gambling sector will usher in the month of October with a...
The casinos of America are fast becoming video-poker paradises as video poker machines begin to bump...
Although a restraining order on the implementation of the Unlawful Internet Gambling Enforcement Act...
Revenues at the betting exchange Betfair have risen by a third after is succeeded in luring record n...
When you see the bug poker players on television, you may wonder how it is that they got to be so su...
One of the most popular ways to have fun at online casinos is to create a free play money account. T...
The host of online casino, PlayersOnly.com, Carrie Stroup, is celebrating her Babe of the Month spre...
Britain's new gambling law came into force at midnight September 1, legalizing U.K. advertising camp...
Inver Hills Community College announced today its online Casino Gaming program is now available for ...
Swedish online gambling software developer and turnkey provider Net Entertainment has announced a de...
Lakewood’s so-called “gambling moratorium” – which the Lakewood City Council is likely to extend for...
Online Casino and Sportsbook and poker room, Bodog.com, has announced yet another domain change foll...
Online Poker News - news
from the world of
Online Poker RSS Feed.
The OPN directory is currently in development and will be available soon. If you are interested in adding a link, just click on the “Add Link” button. Thanks for your patience.
Club USA Casino is a new comer to the online casino world. Besides offering more than 90 casino, Clu...
The BetUS Online Casino offers the best bonuses and casino promotions in the business.
A mas...
Receive an EXCLUSIVE 300% bonus on all deposits up to $250 (That`s $7500 to play with!) Valid for 6...
You do not need prior permission to link to any of the pages on this site. Limited copyright is granted for you to use and/or republish any of the articles on this site for any legitimate media purpose as long as you reference OPN as the source, and include a link referring the reader to the OPN site.