Supplier of software and related services for the international gambling industry Playtech announced today that it has acquired fellow gambling provider Best Gaming Technology (BGT) for the amount of €138 million. The acquisition comes as part of Playtech’s strategy to expand its global presence and to enhance omni-channel offering in a bid to bring digitalization within the retail gambling business.
BGT was founded in Vienna, Austria in 2005. Since then, the company has gradually turned into a major provider of sports betting software and related solutions to international gambling operators. Major gaming and sports betting companies Ladbrokes, Paddy Power Betfair, William Hill, Codere, and Betfred are only few of its renowned customers.
Generally speaking, the Vienna-based company specializes in the provision of software for self-service betting terminals. What makes BGT’s offering different from that of its rivals is the fact that it combines top-class technology with a digital terminal. The software supplier also offers ePOS and till systems, as well as an omni-channel sports betting platform.
Playtech pointed out that expanded presence not only in the UK but also in the Spanish and Italian markets would be among the numerous benefits to be reaped from the acquisition.
Under the terms of the transaction, Playtech has purchased 90% of BGT’s issued share capital for the total amount of €138 million. BGT founder and CEO Dr. Armin Sageder retained the remaining 10%. Mr. Sageder will remain with the company for the next three years.
In addition, Playtech has the right to buy the remaining 10% share in 2019 at a valuation of 6 x BGT’s EBITDA for that year. The sale of the said 10% share is subject to a maximum €55-million consideration and with Dr. Sageder having particular put options over it. The executive may also receive the additional amount of €5 million in case certain operational milestones are achieved.
Commenting on the acquisition deal, Playtech CEO Mor Weizer said that they believe retail operators need to enhance their offering by digitalizing it, thus creating “simple and intuitive experience” for gambling customers and adding a whole new channel by integrating with online offering.
By partnering with BGT, which has already established itself as one of the leaders in the provision of innovative sports betting solutions, Playtech would be able to realize the full potential of “a true omni-channel offering,” the executive added.
Dr. Sageder said that BGT is in that point of its development when it is entering new markets while upgrading its product offering. He also pointed out that his company and Playtech will have the chance to take the omni-channel concept to the next level.
