Playtech Pays Teddy Sagi €280m
Playtech just purchased founder Teddy Sagi’s PT Turnkey Services (PTTS), the holding company for Europartners, arguably one of the premier affiliate programmes in the internet casino business today, the software business disclosed in its yearly results.
In a recent statement to the stock exchange, Playtech confirmed the purchase of PTTS, including Europartners with its 50,000 registered players for the amount of €140m (£120m). This purchase price could increase to as much as €280m by 2014 all depending on the performance of PTTS.
In a recent interview with Cassaon-casino just after Playtech’s annual results presentation, Mor Weizer chief executive said this business venture enables Playtech “direct contact with internet casinos and its players for the first time”. On the flip side, Weizer denied that today’s acquisition would propel the business into a higher tax bracket in different markets.
PTTS yielded profits in excess of €90m in 2010 with more than 50,000 affiliates on its network. In essence it makes it one of the most influential marketing, acquisition and retention businesses in the internet gambling business; cementing Playtech’s as a software provider.
The acquisition will also ensure that staff numbers are more than doubled with 850 PTTS employees based in Bulgaria and the Philippines joining the current thousand staff employed in regions such as Estonia, Israel and Australia. PTTS has four primary divisions they are marketing, operations, payment advisory and network management. Five clients in the marketing services division, four are in regulated and soon to be regulated markets, all these internet casinos run on Playtech’s software platform. Casino number five in Spain is Gran Madrid.
The purchase, will be concluded at the end of June, is regarded a formality with PTTS which presently provides services to 60 plus of Playtech’s licensees due to its ownership by Sagi who holds a 40.4% share in the software company. It also said that its profits would increase this year by more than 13% adjusted earnings by 2012.
Chief executive Mor Weizer informed us that new and current licensees would be able to access Playtech’s wide ranging marketing capabilities, an affiliate programme that is 50,000 members strong in various markets, segmentation and analysis capabilities, better player retention that permits them to acquire and hold on to more players”.
“We will also be assisted by Europartners as we expand our operations into new jurisdictions. In addition we’ll have a proactive customer service that is focuses chiefly on retention, player service and support as well as.
Playtech experienced yet another flourishing financial year where its profits increased by 24% from €114.8m in 2009 to €142.3m in 2010. Profits increased by 4% from €89.4m to €93.2m.[addtoany]