Playtech buys Best Gaming Technology for €138m

Playtech said it has was buying 90% of sports betting software maker Best Gaming Technology (BGT) for €138m in cash.

Headquartered in Vienna, BGT was founded in 2005 and is the leading provider of sports betting software and solutions for gaming and sports betting operators, Playtech said.

Its customer base include Betfred, Codere, Coral, Ladbrokes, Paddy Power Betfair and William Hill.

The remaining 10% of BGT will be retained by the company's founder and chief executive Armin Sagede who will remain with for at least 3 years from completion.

Playtech has a call option to purchase the remaining 10% of BGT at a valuation of 6x BGT's 2019 earnings before tax, interest, depreciation and amortisation, subject to maximum price of €55m with Sageder having certain put options over his 10% holding at the same valuation.

Sageder may also be entitled to an additional payment of €5m subject to the achievement of certain operational milestones.

In 2015, BGT generated revenues of €41.6m, with all of these revenues coming from regulated markets, and over three quarters of revenues coming from the SSBT software segment.

BGT generated adjusted EBITDA of €12.9m in full year 2015 and €12.5m of adjusted EBITDA in the first six months of 2016. In 2015, BGT generated profit before tax of €6m and had gross assets of €35.9m as at the year end.