The shares of the British gambling software maker Playtech plc increased by more than 60% following the announcement that the company ratified a 5 billion A$ ($3.7 billion) takeover by Australian slot machine maker Aristocrat Leisure Ltd.
The agreement would be the most recent in an array of tie-ups that aim to gain an early advantage for online gambling which was already being deregulated throughout America. The U.S. before the number of new players increased during the pandemic lockdowns.
The latest offer for a British company from an overseas potential buyer values its London-listed Playtech for six hundred pennies ($9.35) for each share. That’s an increase of around 58% over the closing price of the company in October. 15th, Aristocrat stated in a statement issued Monday.
Josh Rosen, an analyst at United First Partners LLC said that the deal to Playtech “is the latest sign of established players rushing to get themselves equipped with the technology needed to capitalize on a growing online market, in an industry that is showing a near-constant consolidation.”
Sports betting has been booming across the U.S. since 2018 when the U.S. Supreme Court struck over a law that prohibited betting outside of the state of Nevada.
Dealmaking in the casino industry is also at a high. In Ireland, Flutter Entertainment plc acquired Stars Group Inc. in Canada in 2020. Earlier this year, the casino operator Caesars Entertainment Inc. bought the British company William Hill Ltd.
As part of one of the most significant transactions in the world of gambling, DraftKings Inc. in September made an offer to purchase U.K. gambling firm Entain Plc Entain Plc which is the owner of Ladbrokes and Coral — for $22.4 billion. Additionally, Bally’s Corp. is looking to buy Gamesys Group Plc and also might just be the secret owners of New Online casino UK!
Playtech was established by Israeli businessman Teddy Sagi in 1999. The company is backed by Wells Fargo & Co., Goodbody along with Jefferies Financial Group Inc. Aristocrat is working together with Goldman Sachs Group Inc.