If you needed any type of official confirmation that the casino software provider and games developer, Playtech, is a force to be reckoned with, it’s worth checking out the latest note issued by the prestigious German financial institution, Deutsche Bank.
After Playtech announced that it had completed the R12,675,000,000 (€846 million) acquisition of its Italian gaming rival, Snaitech, Deutsche Bank decided that it was time to boost Playtech’s price target. As such, the London-listed Playtech re-iterated its ‘buy’ on Playtech’s stock and increased the group’s target from 1070 p to 1,300 p.
In its note issued about Playtech, Deutsche Bank said: “The long-awaited deal catalyst has now arrived, with a consequent improvement in balance sheet efficiency, material earnings accretion and medium-term re-rating opportunity (less unregulated market exposure; online growth opportunity).”
Also noting, Deutsche Bank said: “PTEC has been instrumental in multiple retail to online convergence agendas for its B2B customers. The Snaitech acquisition means that PTEC now has a principal position.”
As a reminder, Playtech announced earlier this month that it would be buying Italy’s SNAITech as a means to make more significant tracks in regulated online gambling markets. The group, which provides games to top South African facing online casinos such as Winner Casino and Europa Casino, agreed with SNAITech shareholders to acquire just over 70% of the company’s issued share capital. After the acquisition is completed, Playtech said it would be required to make an offer for the remaining shares.
The purchase will help Playtech establish a strong presence in Italy, and once the deal is final, 78% of the group’s revenue will be generated in regulated markets. The initial acquisition should be finalized in the third quarter of 2018, while the overall transaction will be complete in the fourth quarter. The deal completion of the deal is still subject to regulatory and shareholder approval.