Euro Partners Acquired by Playtech
One of the world’s largest online gaming affiliate programs, Euro Partners, has been purchased by the one of the world’s largest online gaming software providers, Playtech, CasinoAdvisor.com is reporting.
“The acquisition was made in a slightly roundabout way,” Mark Freedman explains in the CasinoAdvisor.com article. “Playtech founder Teddy Sagi owns PT Turnkey Services (PTTS), which in turn is the holding company for Euro Partners.
“Playtech paid Sagi €140 million in cash for PTTS,” Freedman continues. “Further payments are due up to 2014 depending on the performance of PTTS. PTTS earned revenues of €90 million last year. Because of this deal the earnings of PTTS are likely to by more than 13% by 2012. On present estimates it is expected that the total outlay of Playtech for this purchase could go up to €280 million.”
The Euro Partners affiliate network is more than 50,000 strong, Freedman adds, “making it one of the most powerful marketing, acquisition and retention businesses in the online gaming industry.”
It’s a natural fit, too, given that the online gaming sites in the Euro Partners network — including Vegas Red Casino, Titan Poker, and Europa Casino — already run on Playtech software.
So, look for Playtech to have a much larger presence on the online gaming market, just as the industry prepares for the new bwin/PartyGaming mega-company.
However, Playtech chief executive Mor Weizer is saying that the deal wouldn’t mean that Playtech would technically become “a fully fledged operator”.
The acquisition is expected to be completed by the end of June.