In what has to be considered a major play in the online casino industry, leading iGaming software developer Playtech (LSE: PTEC) has announced the acquisition of Quickspin AB (“Quickspin”) as part of a plan to aggressively expand its operations across the globe. With this particular acquisition, Playtech assures itself deeper penetration into the Swedish iGaming market.
Headquartered in Stockholm, Quickspin has recently established itself as one of the fastest growing slot developers in the world. The company currently has a portfolio of 20 slots that includes popular titles such as Beowulf, Firestorm, Goldilocks and the Wild Bears, Razortooth and The Three Musketeers along with the recently released, Genies Touch and The Wild Chase
Terms of the Playtech Quickspin Agreement
Under the terms of the deal, Playtech will be paying consideration of up to six times Quickspin’s EBITDA (earnings before income taxes, depreciation and amortization) in 2018 with a maximum purchase price set at €50m. An initial payment of €24m will be made reflecting the purchase of 100% of Quickspin’s outstanding stock, determined on a cash free / debt free basis. The remaining portion of the purchase price will be determined based on Quickspin’s EBITDA for the fiscal years ending December 31, 2017 and 2018.
As part of the acquisition, Quickspin’s founders, Daniel Lindberg (CEO), Joachim Timmermans (CPO) and Mats Westerlund (CCO), have agreed to remain with the organization for the next three years. This is being done to assure continuity during a representative transition period. During this time, Playtech will oversee the development of additional games while distributing Quickspin’s current content through its existing distribution channels.
As part of Playtech’s press release related to this acquisition, Chief Executive Officer Mor Weizer stated, “We are delighted to welcome Quickspin into the Playtech group. Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech’s position as the leading platform and content provider in the industry. We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family”.
In its quest to become the most prominent iGaming software developer in the world, Playtech has made clear its intentions and plans for additional acquisitions, including larger acquisitions that are sure to have a major impact on the balance of power within the iGaming industry.