PLAYTECH ACQUIRES QUICKSPIN AB
24th May, 2016 at 15:00:23
M&A strategy kicks off.
Playtech has acquired Swedish games studio Quickspin AB for a maximum consideration of six times Quickspin's EBITDA in 2018, capped at Euro 50 million.
The maximum consideration of Euro 50 million comprises an initial payment of Euro 24 million for 100% of the shares of Quickspin on a cash free / debt free basis with the remaining maximum consideration of Euro 26 million payable on an earn-out basis by reference to Quickspin's EBITDA in 2017 and 2018.
Headquartered in Stockholm, Quickspin's portfolio currently consists of over 20 quality games. The company provides games to around forty customers, including international tier 1 operators.
Quickspin generated revenue and adjusted EBITDA of Euro 6.0 million and Euro 2.1 million respectively in the financial year ending 31 December 2015 and has a bullish forecast for growth over the coming years boasting a strong pipeline of new customers and games.
The acquisition will provide Playtech with a proven virtual slot machine games portfolio, strengthening the company's position, as well as providing greater penetration in the Nordic region.
In addition to Quickspin's existing customer base, Playtech plans to distribute Quickspin's content through its existing distribution channels across all verticals.
Quickspin founders Daniel Lindberg (CEO), Joachim Timmermans (CPO) and Mats Westerlund (CCO) will remain with the business for at least 3 years after completion of the deal.
"Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech's position as the leading platform and content provider in the industry," Mor Weizer, Chief Executive Officer of Playtech, said.
"We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family.
"Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the Gaming division, together with discussions for selective bolt-on acquisitions in the Financials division."
Related News Tags: Playtech, Sweden