Playtech to Purchase Sportsbook Developer Geneity - 01-26-12

January 26 - Playtech, the London-listed online gaming software provider, has announced an acquisition deal of the online lottery and sportsbook software provider, Geneity.

Playtech will pay a £11 million cash consideration for the group, depending on performance, with £4 million to be held in escrow for two and a half years.

A further £4 million will be paid, "subject to certain agreed deliverables to be provided by Geneity," said Playtech in a statement.

The London-based Geneity, which was founded in 2006, has established deals with a number of top companies in the business, including Gala Coral, to whom it supplies its top quality sportsbook software.

The controversial new Health Lottery uses Geneity's online lottery platform, while the group also has contracts with Ladbrokes and Betfair sports betting giants.

The Managing Director for Geneity, Will Slater said about the news that Playtech is to purchase Geneity: "Geneity is delighted to be joining the Playtech family, the synergies between the respective companies and products are very strong."

He said that his group has created a highly advanced sports betting platform with integrated in-play algorithms, per channel pricing and a scalable and modular architecture.

"It's very exciting to be able to offer our sports betting platform to a wider audience alongside Playtech's existing best of breed products," said Slater.

Playtech Recognizes Importance of Sports Betting

Playtech, which is listed on the London stock exchange, showed its recognition of the importance of a solid sports betting platform in its statement.

"Sportsbook is often the prime entry point for companies into online gaming," noted the Chief Executive Officer for Playtech, Mor Weizer.

Weizer said that over the past year, the pace of change in the sportsbook segment of the industry has led the group to believe that it needed to acquire experienced developers to give it a market leading capability.

"Geneity will deliver a range of features key to Playtech's sportsbook such as in-play betting and a broader rang of sports on which to wager," said Weizer.

Playtech recently acquired the interactive gambling and betting games group, Ash Gaming for £23 million.

The latest deal will see Playtech acquire the entire issued share capital of Geneity Ltd.  The latter recently reported unaudited revenues for the year (ending March) of £2.3 million, of which pre-tax profits were £820,000.