Playtech seeks SSBT growth through BGT acquisition
Playtech has paid €138 million ($152.6 million) to acquire Best Gaming Technology (BGT), the sports betting software and solutions supplier.
Playtech has acquired 90% of the issued share capital of BGT, with the remaining 10% retained by Dr Armin Sageder, BGT's founder and chief executive, who will remain with BGT for at least three years from completion.
Playtech identified BGT’s leading position in the supply of software for self-service betting terminals (SSBTs) in retail outlets as a key reason for its decision to acquire the Vienna-headquartered business.
It also said that BGT offers “greater penetration” into the Spanish and Italian markets with “several significant potential new customers in the pipeline”.
BGT’s customer base already includes major operators Betfred, Codere, Coral, Ladbrokes, Paddy Power Betfair and William Hill.
Mor Weizer, chief executive of Playtech, said: “We believe that the future of gaming is for retail operators to digitise their offering, creating a simple and intuitive experience for customers as well as creating an opportunity to extend beyond retail and into online, including web and mobile.
“This follows the same trends we see in other commercial sectors around the world with the modernisation and digitisation of betting shops not only improving the retail experience but also adding a whole new channel as it integrates into an online offering.”
BGT generated revenues of €41.6 million in FY2015, with all of these revenues coming from regulated markets, and over three quarters of revenues coming from the SSBT software segment.
BGT generated adjusted earnings of €12.9 million in FY2015 and generated profit before tax of €6 million.
Weizer said: “BGT is the leading provider of sports betting software and solutions for gaming and sports betting operators in what is one of the fastest growing verticals of our industry. BGT offers the market's most sophisticated retail sports solution which is also both modularised and flexible, allowing Playtech to quickly integrate with its own platform.
“As the only company that will offer FOBTs and SSBTs, all integrated with the world's leading online platform and products, Playtech will realise the potential of a true omni-channel offering for the benefit of both consumers and operators.”
Related article: Ladbrokes and BGT to roll out additional SSBTs