Playtech buys UK-focused gambling software specialist

Gambling software company Playtech has bought Australian supplier of online gaming slots software Eyecon for £50m, as part of its acquisition strategy to extend its reach in the gaming market.

The £50m comprises of an initial payment of £25m on a cash and debt free basis, which represents about eight times Eyecon's current run-rate earnings before interest, tax, depreciation and amortisation (EBITDA).

An additional payment of up to £25m is payable on an earn-out basis of six times Eyecon's EBITDA in the period to June 2019, subject to certain adjustments, less the initial payment.

Playtech chief executive Mor Weizer said: "Eyecon adds premium quality games to Playtech's stable of industry leading content. We look forward to working with the Eyecon team who will bring robust technology and further industry expertise to the Playtech family.”

He said that the acquisition is the latest in the company’s strategy to acquire bolt-on technology and content in key gaming markets, providing Playtech with even greater penetration and reach, as well as bringing additional regulated revenues to the company.

Scott Murray, the founder of Eyecon who is to remain with the business for at least three years, added: "Integrating Eyecon's specialist games and software with Playtech's distribution power will allow us to penetrate new markets and retain our standard of best in class content.”

Brisbane-based Eyecon has a portfolio of over 70 games, including soft gaming slot 'Fluffy Favourites' and currently derives almost all its revenue from the UK, and almost all of Eyecon's revenues are fully regulated.

Playtech said that Eyecon's content portfolio and its distribution network through the use of its remote gaming software, which allows it to distribute content direct to operators and through distributors such as 888 Holdings, Virtue Fusion, Playtech's bingo network, will strengthen its position as a content provider.