Bullet Business

Online gaming software firm Playtech Ltd has acquired the business and assets of Virtue Fusion. The company would pay an initial £29 million in cash plus up to £7 million in the first four months of 2011 based on Virtue Fashion’s performance in 2010.
 
The transaction is anticipated to be earnings accretive in 2010, according to Playtech.
 
Virtue Fashion had a turnover of £12.3 million and adjusted earnings before interest tax depreciation and amortisation of £3.8 million in 2009.
 
Playtech stated that this acquisition significantly enhances its own bingo offering, brings new licensees and enhances its relationships with a number of existing licensees. It also positions Playtech as the leading supplier in all of the key product segments in the online gaming industry, with very substantial liquidity in each of its player networks.
 
Licensees will also benefit from the opportunity to integrate with Playtech’s IMS information management system.
 
Playtech highlighted that in a number of newly regulated markets, bingo is an embedded part of the social and gaming culture and a product which finds early favour with regulators.
 
“Consequently, we see this acquisition as not only furthering what is already Playtech's competitive advantage in the growing online gaming market as a whole, but as having the potential to generate meaningful opportunities in newly regulated markets,” said Mor Weizer, CEO of Playtech.