Major gambling software developer Playtech announced that it is to purchase Swedish gaming studio Quickspin as part of its strategy to expand its global reach.
Founded in 2011, Quickspin is a fast-growing company that specializes in the development of video slot games for both the online real money gambling and the social gaming markets. So far, the studio has released more than 20 games and has signed content distribution agreements with over 40 B2B customers, including international top-tier gambling operators.
Last year, Quickspin generated the total amount of €6 million in revenue and of €2.1 million in adjusted EBITDA. The company is expected to continue its growth in the years to come, especially given the fact that it has signed a number of new customers recently, thus securing a strong pipeline of both clients and new gaming content.
The acquisition deal is aimed at empowering the buyer with an excellent catalog of virtual slot machine games, thus strengthening Playtech’s position as one of the leaders in the industry for provision of gaming content. The transaction would also allow Playtech extend its reach in the Scandinavian region.
Under the terms of the deal, Quickspin content would be distributed through its new owner’s channels and across all available verticals.
It was announced that Playtech would pay up to €50 million for Quickspin, or 6 times the gaming studio’s EBITDA projected for 2018. The maximum consideration of €50 million would be comprised of a €24-million initial payment for all Quickspin shares on a cash free/debt free basis. The remaining €26-million maximum consideration would be calculated on an earn-out basis and would be paid referring to the Swedish company’s EBITDA in the 2017 and 2018 calendar years.
Commenting on the latest addition to Playtech’s family, CEO Mor Weizer said that the deal would further establish the software developer as a leader in the provision of a gaming platform and related content in the online gambling industry. Mr. Weizer further noted that they are looking forward to working with Quickspin and to see the gaming studio flourish and thrive within the Playtech group.
The Swedish gaming developer was founded by industry veterans Daniel Lindberg, Mats Westerlund, and Joachim Timmermans. All three officials will remain with the company for at least three years from the transaction’s completion.
