PLAYTECH ACQUIRES EYECON
07th February, 2017 at 08:36:07
Key market bolt-on technology and content strategy in play.
Playtech has acquired the entire issued share capital of Australian online gaming software developer, Eyecon Limited and Eyecon Pty. Ltd (Eyecon) for a maximum total consideration of £ 50 million.
Eyecon, founded in 1997, offers an established games portfolio of over 70 games, with a particular focus on bingo audiences. The company distributes its content through a proprietary Remote Gaming Server direct to clients.
Eyecon currently derives almost all its revenue from the UK market and in line with Playtech's acquisition strategy, almost all of Eyecon's revenues are fully regulated.
The maximum consideration of £ 50 million (c. Euro 58 million) comprises an initial payment of £ 25 million (c. Euro 29 million) on a cash free / debt free basis, representing a multiple of c.8x Eyecon's current run-rate EBITDA.
An additional consideration of up to £ 25 million is payable on an earn-out basis of six times Eyecon's EBITDA in the period to June 2019 (subject to certain adjustments) less the initial payment.
Eyecon founder, Scott Murray, has committed to remain with the business for at least three years.
"Eyecon adds premium quality games to Playtech's stable of industry leading content. We look forward to working with the Eyecon team who will bring robust technology and further industry expertise to the Playtech family," Mor Weizer, Chief Executive Officer of Playtech, said.
"This acquisition is the latest in our strategy to acquire bolt-on technology and content in our key gaming markets, providing Playtech with even greater penetration and reach, as well as bringing additional regulated revenues to Playtech."
"Integrating Eyecon's specialist games and software with Playtech's distribution power will allow us to penetrate new markets and retain our standard of best in class content," Eyecon founder, Scott Murray, added.
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