Playtech purchases Virtue Fusion Limited

[The Buzz]

Playtech, a leading online gambling software provider, has made a move to further its bingo base after purchasing Virtue Fusion, a developer of online bingo products.

The deal is initially for €33.4 million, with an additional payment of €8.1 million dependent on performance in the first quarter of 2011.

The GPWA has the press release:

(PRESS RELEASE) -- Playtech Ltd, the leading software provider to the online, mobile, TV and land based gaming sector, today announces it has acquired the business and assets of Virtue Fusion, the leading developer and licensor of online bingo products.

In summary:

· Initial consideration of £29 million (€33.4 million), subject to agreed working capital adjustments, funded from Playtech's existing cash resources

· Additional earnout payment of up to £7 million (€8.1 million) payable in the first quarter of 2011 based on adjusted EBIT performance in 2010

· Transforms Playtech into the market leader in bingo, complementing its leading position in poker and casino, and as content provider

· Substantially enhances player liquidity with additional cross-selling opportunities

· Adds a suite of leading brands to Playtech's growing stable of licensees

· Transaction anticipated to be earnings accretive in 2010

In the 12 months to 31 December 2009, the financial performance attributable to the assets being acquired comprised turnover of £12.3 million (2008: £8.1 million) and adjusted EBITDA of £3.8 million (2008: £2.3 million). These figures are based on the unaudited consolidated accounts of Virtue Fusion's group, and reflect the fact that bingo has been one of the fastest growing segments in online gaming in 2009.

[cameronlove4]

Great news man

[Anthony]

Big move for Playtech. They recognize Bingo's growth potential and are capitalizing on it.

You know you are doing well when you have £29 million in cash reserves available.

[alexpratt]

Geez - I remember when these guys first launched and did a campaign in iGaming Business - Let that be a lesson for you, launch a software, advertiser in iGaming Buisness and sell you company for a shed load