Gambling software giant Playtech has found a way to get a leg up on the competition: buy it.
Eight Figure BGT
In a €138m deal, Israeli billionaire Teddy Sagi´s group has acquired rival operator Best Gaming Technology (BGT) in the latest merger within a wave of industry consolidation.
Robust Playtech Growth
Fresh off a year in which full year results to December 31 to 2015 showed revenue increases from €457m to €630m, Sagi had indicated earlier this year his organization´s pursuit of a number of acquisitions to continue expanding distribution of the technology it offers to customers such as Sky and Ladbrokes.
Wednesday, Playtech announced the cash acquisition of 90 per cent of Vienna-based BGT, with an option to buy the remaining shares for up to €55m from BGT 2005 founder and chief executive Armin Sageder, who plans to remain at the group for at least another three years.
The Rise of BGT
BGT has made a name for itself with software creation for self-service stand alone betting terminals allowing punters to do everything from placing sports bets to playing casino games.
Omni Channel Advantage
The key competitive technology of the BGT machines appealing to retail bookmakers is the “omni-channel” capability enabling punters to use online gambling account funds to wager on physical machines in land-based betting shops.
Playtech accomplishes the task of strengthening its position in the UK, Spain and Italy by adding the 24,000 machines BGT is contracted to support across UK, Ireland, Spain, Austria and Germany to its existing contract with Gala Coral to provide omni-channel capabilities to all of that operator´s machines.
Playtech chief executive Mor Weizer explained how the deal coincides with his company´s recognition that “the future of gaming is for retail operators to digitise their offering, creating an opportunity to extend beyond retail and into online including web and mobile.”
Look for omnichannel capabilities to be a key bargaining chip in mergers, acquisitions and expansion moving forward.