NETPLAY AND PLAYTECH IN MAJOR ONLINE GAMBLING DEAL
10 July 2009
Playtech to provide online gambling software
to NetPlay brands in return for live gaming products for
its licensees. GBP 12.8 million cash injection envisaged
Making the industry headlines Thursday was a joint
announcement of a 5 year partnership deal from
AIM-listed companies NetPlayTV plc and Playtech plc.
NetPlay, a 'live' interactive TV gambling
specialist, will be migrating its online and interactive
gambling operations such as Supercasino.com, Bingos.com
and EuroTeleMillions to the Playtech gambling software
platform, and in return Playtech licensees will be given
access to Netplay's successful live gaming products.
Netplay will also be boosting its future growth
potential with a GBP 12.5 million cash injection raised
from the sale of shares.
The deal gives Netplay
access to the full suite of Playtech products including
Casino, Poker, Bingo, TV and Mobile games.
NetPlay's Bingo migration from its current software
provider will significantly increase Playtech's Bingo
liquidity and boost Playtech's bingo offering. In
addition, the agreement will position Playtech as a
market leader in Live Gaming following its strategy to
diversify its products portfolio and create cross
selling opportunities for its licensees, a Playtech
statement explained.
NetPlay TV announced that
it has conditionally placed 58 352 476 new ordinary
shares of 5p each at a price of 22 pence per share,
raising gross proceeds of GBP 12 837 545 which will be
used to strengthen the company's balance sheet and
provide capital for future growth. These new shares,
which will be placed with investment company Directforce
Trading Limited will represent approximately 29.9
percent of the company's enlarged share capital. The
beneficiary of Directforce also has a beneficial
interest in a significant shareholder of Playtech
Limited.
The deal requires the approval of
Netplay shareholders, and the company has received
irrevocable commitments from certain shareholders
representing 43.4 percent of the its current issued
share capital to vote in favour of the resolutions to be
proposed at a General Meeting.
Martin Higginson,
CEO of NetPlay TV plc, said: "This agreement will take
NetPlay TV to new heights. The investment of GBP12.8
million into our business, along with the strategic
relationship, both in terms of distribution and
technology with Playtech, will enable us to drive the
development of our converged gaming solutions.
"'Live' gaming is being demanded by more and more
customers and this agreement will allow us to deliver
our products to a much wider audience."
Mor
Weizer, Playtech's CEO, added: ""We have been looking
for a partner in the 'live' interactive gaming market
for some time. Our clients and their customers are
demanding 'live' products and therefore it is logical we
offer them the best services available. This agreement
enables us to offer our licencees unique TV quality
gaming shows, this will also enrich their offering to
gamers, and will also boost Playtech's Bingo offering,
increasing Playtech's bingo network liquidity
significantly.
"We are extremely happy to
partner with NetPlay TV Plc who are the clear leader in
'live' interactive gaming. We see this agreement as a
natural step in Playtech's business strategy of entering
into the interactive TV gaming market and further
supplements the acquisition last year of interactive
mass-multiplayer live gaming assets.
"We believe
'live' gaming is going to be very big in the coming
years and,as such, a significant investment in this
business makes perfect sense."
Online Casino News Courtesy of
Infopowa
More news here.
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