Playtech has announced its acquisition of Quickspin, the Swedish games studio that develops and supplies slots.
Headquartered in Stockholm, Quickspin's portfolio currently consists of over 20 games that are provided to over 40 customers, including many international Tier-1 operators. Quickspin generated revenue and adjusted EBITDA of €6.0m and €2.1m respectively in the financial year ending 31 December 2015 and is forecast to grow significantly over the coming years, with a number of new customers recently secured.
The acquisition will provide Playtech with a proven virtual slot machine games portfolio, as well as providing greater penetration in the Nordic region. In addition to Quickspin's existing customer base, Playtech plans to distribute Quickspin's content through its existing distribution channels.
Playtech will pay a maximum consideration of six times Quickspin's EBITDA in 2018, subject to a cap of €50m. The maximum consideration of €50m comprises an initial payment of €24m for 100 per cent of the shares of Quickspin on a cash free/debt free basis with the remaining maximum consideration of €26m payable on an earn-out basis by reference to Quickspin's EBITDA in 2017 and 2018.
The founders of the business, CEO Daniel Lindberg, CPO Joachim Timmermans and CCO Mats Westerlund will remain with the business for at least three years from completion.
Mor Weizer, chief executive officer of Playtech, said: "We are delighted to welcome Quickspin into the Playtech group. Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech's position as the leading platform and content provider in the industry.”
Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the gaming division, together with discussions for selective bolt-on acquisitions in the financials division."
