by Anton Johan
Playtech software group has entered into a long term agreement with Gala
Coral, one of Europe's largest betting groups, to provide it with a technology
platform and with gaming products.
Playtech's products will support Gala Coral's entire range of brands,
including sports betting.
"The deal recognises our platform's technological leadership and we are
confident it will provide Gala Coral with the player management tools and
functionality to drive its entire online business," said the Chief Executive
Officer of Playtech, Mor Weizer.
The ten year deal was announced in Playtech's quarterly update, and is ranked
as one of the group's top three deals. It is estimated to be worth around €5
million year (pre-tax profit).
Playtech already supplies and operates 6,500 of Gala Coral's Videobet gaming
terminals, although this is the first time that the group has signed a deal for
such a comprehensive package of gaming technology for one single operator.
Playtech's partner, William Hill, is aware of the deal and has not raised any
objections as it did when Playtech sought to enter into negotiations with
Ladbrokes.
Playtech Also Purchases Mobenga
Playtech also announced that it will pay as much as €15.8
million for the Stockholm based Mobenga, which will give the group the ability
to combine sports betting, casino and poker games through a single mobile phone
application.
Mobenga supplies mobile sportsbook betting platforms to a wide
range of customers, including Paddy Power, Unibet and Skybet.
The consideration for the acquisition comprises of an initial
€8 million, and further consideration based on a six times multiple of the
profit before tax of Mobenga in 2013, with a cap on €15.8 million.
The initial €8 million has been financed from Playtech's cash
resources.
