British giant makes decision to exercise option on online gambling joint venture.
William Hill has finally made the decision to activate its call option on Playtech's 29 percent stake in their William Hill Online joint venture, announcing that it will pay £424 million ($636m.) for the honor.
Hill pulls the trigger
Hill's decision to buy out Playtech's shares ends a mutually beneficial but often problematic relationship. Hill had been seeking for some time end Playtech's veto over new acquisitions, with the software developer's potential partnership with main British gambling rival Ladbrokes proving to be one source of discontent.
This latest announcement comes fresh off the back of Hill's £460 million acquisition of online betting provider Sportingbet, as well as the group's first steps into the burgeoning US market, which Hill CEO Ralph Topping and other industry insiders believe holds unlimited opportunities for the online gaming market.
Aiming for the sky
In a five year time frame this organisation should be a £5 billion company, CEO Topping said in the announcement. In today's market, such a valuation would enable Hill to enter the Financial Times 500 of the world's largest companies by market capitalization.
Now that it has made its two big moves to start 2013, Topping is insistent that William Hill will not make any more large scale acquisitions in the near future. Instead it will look to spend on smart and targeted short-term deals, as it expands its presence in the US and on the continent in which it has had its most success - Europe.
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