Gambling software giant Playtech has confirmed their acquisition of the Swedish-based software studio Quickspin for a cool €50 million. The move follows suit with Playtech's goals of expanding their regional influence, in this case expanding into the budding Nordic gambling scene.
Quickspin touts a few of the world's top casino game offerings as well as a €6m revenue from 2015 alone so it's easy to see why Playtech was so eager to add this studio into their fold. Playtech is also fully expecting significant growth within the newly acquired studio moving forward as well, a main motivation behind the somewhat rushed deal.
Playtech is considered by many the most elite software conglomerate on the face of the planet as they tout the biggest partners, the most famous games, a wealth of award winning subsidiaries as well as a website that literally states they are "the world's largest gambling software and services supplier." To say Playtech is a fully comprehensive software company is still an understatement.
It should come as no surprise the major software supplier continues to try to expand it's company anyway they can. Playtech spent 2015 looking to expand its offerings with massive, yet unsuccessful acquisitions bids. The first and most notable failed acquisition attempt of 2015 was Playecth's pursuit of Plus500, an online foreign exchange trader. They offered around €700 million for the successful trader site but talks broke down in November of last year.
The second recorded acquisition fail involved the Forex broker Ave Trade. Playtech offered a much more reasonable €105 million bid but these talks fell through as well late last year. Playtech was also rumored to be interested in acquiring the sportbook software supplier OpenBet but NYX Gaming and William Hill partnered to secure that deal before Playtech could.
Moving on from the misses in 2015, Playtech opened 2016 with their announcement of the potential €50 million Quickspin acquisition. Playtech did not actually agree to give €50 million for Quickspin but instead opted to pay a maximum of six times Quickspin’s EBITDA in 2018, subject to a cap of €50m.
Playtech will pay an initial payment of €24m for 100% of Quickspin's shares then the remaining money will be paid on an earn-out basis based on Quickspin’s EBITDA earnings in 2017 and 2018. Playtech CEO, Mor Weizer, explained this move only puts them back on track to acquiring all the top offerings they can:
"We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family. Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the gaming division, together with discussions for selective bolt-on acquisitions in the financials division."
A motivator behind this deal was Playtech's drive to continue worldwide expansion. Quickspin is one of the top software presences in Sweden as well as the whole Nordic region. Playtech saw this Quickspin acquisition as an easy way to move into a prominent role within that region. Many consider the Nordic region a budding gambling scene as major Swedish-based brands like Leo Vegas and Mr Green continue to dominate the industry's awards and recognitions.
The most obvious advantage - outside of regional expansion - Quickspin brings to Playtech is their stellar line-up of topnotch casino game offerings. Quickspin has cut their teeth making some of the most popular slot games on the market. Connecting with the nostalgia of childhood, Quickspin turned to classic novels and memorable fables for inspiration to some of their most popular titles.
Quickspin's talented team of developers created the timeless Goldilocks and the Wild Bears slot game, as well as other notable titles like Big Bad Wolf and Rapunzel’s Tower. But they didn't stop there, producing other notable titles like the Beowolf and Treasure Island slot games.
All in all, Playtech is gaining a dedicated team of some of the world'd most talented game designers. Combining Playtech's influence and resources with the minds behind Quickspin is what has so many industry veterans excited about this deal.
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