Playtech Acquires Gambling Company GTS

December 13, 2009 | News Category: Casino Software

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Playtech plc, based on the Isle of Man, is well-known as one of the leading online gambling software providers. The gambling software company has acquired Gaming Technology Solutions (GTS), a skill games provider.

Playtech stands to gain much from this recent acquisition of a well regarded open platform, with a choice of games that will work well in combination with Playtech’s existing products and games. The size and quality of the library available to online gambling operators and those offering soft games will be substantially increased and improved on. It has been noted that Playtech’s player management system, the Integrated Managed Solution (IMS) will be integrated with GTS’ EdGE (Enhanced Gaming Engine) open games platform, which maximizes the player’s spend and game revenue and minimizes operational costs at the same time.

The acquisition of GTS brings many benefits with it, especially their already establish client base. The client base includes their existing licensing agreements with 30 different online gaming brands and 15 separate European gaming companies. At least ten of the online gaming operators that will be moving with GTS to Playtech are companies that are at this time not using Playtech software. The list includes some of the largest bingo operators, online casino operators, and sportsbook operations from around Europe. Included in this list are some of the larger companies such as Bwin and Unibet.

Mor Weitzer, the Chief Executive Office of Playtech said "Our agreement with GTS is a strategic move. It will enable us to work with a true open platform and integrate new games seamlessly. We have been looking to enhance our open content capabilities, and in effect become an aggregator of quality gaming content. Not many service providers can do that."

Steven Matsell, the Business Development Director for GTS had the following to say: "Our strategy is very much in line with Playtech’s; to be the recognized market leader as a dedicated business-to-business software provider. This deal will underpin the growth of the platform and we very much look forward to the future as part of the Playtech team."

Not only have the future gaming capabilities of the two companies been improved, the financial considerations also work well for both parties. GTS has been bought for €10.8 million, with additional money being paid based on the performance of the company over the next two year time period, with a cap at €21.6. The deal has been described as a good deal for Playtech, since in the 12 months leading up to June 2009, GTS showed revenues of €2.6 million.