Online gambling technology provider Playtech has acquired Austrian sports betting software outfit Best Gaming Technology (BGT).
On Wednesday, Playtech announced that it had dipped into its vast cash stockpile to pay €138m for 90% of BGT, which provides proprietary software for around 24k self-service betting terminals (SSBT) in retail betting shops.
BGT founder Dr. Armin Sageder will hang on to the other 10% and will stay on as CEO for at least three years following completion of the transaction.
Playtech has a call option to purchase Sageder’s 10% share at a value of 6x BGT’s 2019 earnings, with a €55m cap. Sageder could earn a further €5m based on BGT hitting certain performance targets.
BGT’s business model is based on a revenue share of SSBT gross win. The company reported revenue of €41.6m in 2015, three-quarters of which was derived from its SSBT product.
Last year’s earnings came to €12.9m, but BGT has already earned €12.5m in just the first six months of 2016. BGT earned an after-tax profit of €6m in 2015. Playtech expects the acquisition to provide a ‘high single-digit’ earnings boost over the first full year post-acquisition.
In addition to SSBT technology, BGT provides ePOS (electronic point of sale) and till systems for retail betting operators, as well as an omni-channel web and mobile betting platform. Playtech believes BGT’s product line will mesh well with its own ONE omni-channel offering.
BGT’s clients are a who’s who of UK bookies, including Betfred, Coral, Ladbrokes, Paddy Power Betfair, William Hill, as well as Spanish operator Codere.
Playtech CEO Mor Weizer said the BGT acquisition makes Playtech the omni-channel 800 lb. gorilla, or, to put it more elegantly, “the only company that will offer FOBTs [fixed-odds betting terminals] and SSBTs, all integrated with the world’s leading online platform and products.” Sageder agreed, saying the union would “allow Playtech and BGT to take omni-channel to the next level.”
