Casino software giant Playtech has agreed a deal to acquire Quickspin, the slot games studio. The agreement with Playtech involves a capped €50 million payment, which will be given to Playtech across the next 2 years.
An initial payment of €24 million will be made to obtain 100% of Playtech's shares, followed by a further €26 million, as part of an earnout basis, depending on Quickspin's earnings before interest, tax, depreciation and amortisation (EBITDA) during 2017 and 2018.
The Playtech-Quickspin Acquisition
As part of the deal, Quickspin will have to continue demonstrating long term profitability in order to receive the full payout from the acquisition. Payment isn't the only delayed factor of the deal, as Quickspin founders Daniel Lindberg, Joachim Timmermans and Mats Westerlund will also be remaining with the company for at least 3 years beyond the completion date.
Quickspin are in a good position to gain the maximum offer from the deal, having already generated €2.1 million in EBITDA for 2015. Quickspin already have a portfolio of 20 slots, many of which were some of the biggest releases of each year. Their newest slot game, Spinions Beach Party, is set to release June 14th.
Chief executive of Playtech, Mor Weizer, praised the deal, commentating that “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”.
How It Affects The Players
Given the widespread presence of Playtech powered casinos, with casino giants like Bet365 included among that group, Quickspin slots are set to have their platform greatly expanded. Playtech have expressed an interest in distributing Quickspin games across their existing network, which seems likely given their imminent ownership of the brand.
Although Quickspin slots look to be becoming far more prominent on Playtech casinos, it's currently unknown how this will affect previous deals Quickspin has made with other casinos, such as Betsson owned casinos. It may be the case that some players are about to lose access to Quickspin slots for good, given Playtech's likely interest in not wanting to supply their competition.
Quickspin: Under New Management
It'll be interesting to see what influence Playtech have over Quickspin in terms of their output. We know that where Quickspin slots will be appearing will certainly be up for change, but whether this acquisition will affect their future releases is only guesswork for now.
Playtech's purchase of Quickspin is another high profile acquisition, in an industry that appears to be surviving on the basis of large scale mergers and acquisitions. That strategy seems to be in full effect with this latest buyout.