Playtech Raises 100M GBP for Future Acquisitions

Playtech, the world’s largest gaming software company, has managed to raise £100 million for the purpose of funding future acquisitions.

The company raised the money from its founder, billionaire Teddy Sagi, who increased his share-hold from 40.3 percent to 43.7 percent when he agreed to underwrite £100 share placing for the sole purpose of funding new ventures.

Playtech is using Sagi’s Brickington Investment Company to offer 46.5 million shares at a cost of 215pence per share which is 2.5 percent discounted price compared to the value of the shares based on their closing share price on November 23rd 2011.

Brickington is handling the sale without charging a fee and is prepared to buy out any unsold shares. This means that Sagi’s stake in Playtech could rise to 49.9 percent.

Playtech is currently running one joint venture with William Hill and provides software to gaming giants such as Bwin.Party. The company stated that it is expecting new joint venture deals in the upcoming year that could cost anything from €15 to €30 million.

In addition it is planning new acquisitions at an estimated cost of £40 million. There is no word yet on any specific planned acquisition.

This latest move provides Sagi with even greater control over Playtech. Sagi’s hold over Playtech came into questioning after the recent problems it had with its joint venture partner William Hill.