Playtech places a deadline on JKO’s offer
Published: December 12, 2021
Playtech, a cutting-edge iGaming content provider, has requested from JKO Play to make a serious acquisition offer by January 5th 2022.
The association led by Eddie Jordan and Keith O’Loughlin had initially expressed interest in November 2021, asking for the due diligence information.
However, Playtech had already accepted the $3.57m bid from Aristocrat, days before JKO made an approach. Their offer will be presented to Playtech’s investors at the next meeting.
JKO has to make an official purchase offer by January 5th 2022 at 5pm, which is the seventh day before the shareholder meetings. Otherwise, they have to announce they don’t intend to follow up on the bid.
The deadline will not apply if a third party puts forward a firm offer for Playtech before it has passed. So far, Aristocrat has managed to avoid other potential competitors. Gopher Investments, that maintains a 5% share in Playtech, has decided to withdraw from the race.
Meanwhile, Aristocrat has cleared a big agreement obstacle, as Playtech has accepted to divest its financial division to Gopher. Aristocrat looks to create a global gaming leader in retail and online technologies.
They have already secured $1.14bn to fortify its all-cash transaction which will clear Playtech’s $791m debt. The analysts estimate JKO will need to propose an all-cash deal of at least $4bn to make Playtech governance back down on the deal with Aristocrat.
The Australian enterprise remains a frontrunner in the race, intending to expand its capacities if the transaction is successful. It includes bolstering its revenues, reach new customers, provide material scale in iGaming and leveraging the new Snaitech division to Europe.
If JKO fails to make an official bid, the transaction with Aristocrat is to be completed in Q2 2022. The Aristocrat officials believe they have made an attractive offer that ensures financial certainty and better opportunities for Playtech employees.
Playtech is a cutting-edge technology company in the online casino industry. Established in 1999, it has delivered the best content and software solutions in regulated markets ever since. The pioneer of omni-channel technology, Playtech partners with the most prominent brands to provide a groundbreaking experience.
The company owns and operates Snaitech, the leading iGaming enterprise in Italy. The enterprise’s rich software offering includes live casino, slots, sports betting, poker and bingo. It has won multiple prestigious industry awards and doesn’t plan to stop there.