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Playtech Looking for Acquisitions?

Playtech Looking for Acquisitions?

Online casino software provider Playtech has recently announced that it is delaying its scheduled dividend payment to shareholders, but the “bad” news might be anything but as signs point to it being part of a possible acquisition of joint venture that could expand Playtech’s business.

The press release from Playtech that discussed the delayed dividend included the following: “Due to exceptional strategic M&A and partnership opportunities which are currently under discussion, in order to retain maximum flexibility, it will defer a decision over the interim dividend.”

Chief Financial Officer David Mathewson has also stated that Playtech could spend up to $150 million on a possible deal and that a slump in the stock prices of many publicly-traded online gaming firms have made valuations and possible deals much more attractive.

Playtech has already completed three smaller acquisitions in 2011, with the most notable being the purchase of Mobenga AB, a mobile-phone sports-betting software company.

Playtech’s software offerings are used by online casinos such as Europa Casino and William Hill to offer a wide range of games including slots, blackjack, video poker, and hundreds of other games.

While the company’s revenues have largely been up for the year, its own stock price has dipped by more than 25% on the year, leading Playtech to announce a buyback plan in May to purchase up to 10% of its outstanding shares as well as to pursue various ways to increase shareholder value.

Categories: Casino, Gambling News
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