ISLE OF MAN, England – (PRESS RELEASE) -- Playtech (AIM: PTEC), the listed international designer, developer and
licensor of software for the online and land-based gaming industry, is
pleased to announce today that it has agreed to acquire certain assets and
undertaking of Tribeca Tables Europe Limited ("Tribeca"). The acquisition
is subject to the satisfaction of a number of conditions.
Tribeca is a software designer that provides a poker network solution
to a number of the world's most respected online poker operators such as
VCPoker, PaddyPower Poker and Blue Square Poker. In addition to software
development, Tribeca also specialises in e-marketing and the development of
online poker communities. Most recently, Tribeca announced that the Tain
poker network would be joining the Tribeca network, of which the
Scandinavian group, Expekt, is the largest customer.
In the 12 months to 31 December 2005, the assets to be acquired
generated turnover of c. US$6.2m and gross profits of c. S$5.3m and in
respect of the last three calendar months preceding the date of the
acquisition, the assets to be acquired generated a turnover of c. US$3.9m
and gross profits of c. US$3.4m.*
Following Tribeca's decision to block certain territories, including
the US,the entire Tribeca network will cease its operations n six months
from the date of the agreement, by which time the migration of the online
poker operators to Playtech's platform is planned to be complete.
Playtech expects that synergies between the two companies will lead to
significant savings in respect of the additional costs involved in
supporting the migrated licensees. Additionally, the Company expects higher
revenues to be generated by the ncreased player liquidity, as well as the
introduction of Playtech's casino games to the migrated licensees.
The acquisition significantly strengthens Playtech's share of the
global online poker gaming market and is in line with the ompany's
continued strategy to diversify its portfolio and geographical reach.
Avigur Zmora, Chief Executive Officer of Playtech, comments:
"This is a landmark deal for Playtech, which in one move, transforms
the Company into the world's leading poker network that excludes US
players. Tribeca is an outstanding fit for us and the company's licensees
are operating, for the most part, in different geographical locations to
Playtech's current poker licensees.
"We look forward to welcoming Tribeca's licensees and offering them the
best combination of poker knowledge and world leading technology. Both
Tribeca and Playtech are committed to a smooth transitional period to
ensure that migrating licensees can continue to offer the most attractive
poker environment for their players."
Further details of the acquisition
The consideration for the acquisition is calculated according to a
formula based on Playtech's earnings from the acquired assets. On the basis
that the Company will generate c. US$16m over the coming year from the
migration date, the consideration to be paid for Tribeca will be US$75m.
The final consideration will be adjusted upon Playtech's realised evenues.
The maximum consideration that the Company will be liable to pay is
US$139m, which will be paid in the event that the revenue generated from
this acquisition exceeds US$29m over the coming year from the migration
date.
Playtech will pay the consideration in cash in four instalments. The
first is payable upon satisfaction of specific conditions. he second, third
and fourth payments are to be made on the 9th, 18th and 24th month
intervals, after the date of the agreement, respectively.