Playtech Expansion to Include Affiliate Program

March 21st, 2011  |  Published in Casino News

While Playtech announced its annual results for the year, they also revealed to investors that the company acquired Euro Partners, one of the largest affiliate programs in the industry to date. The acquisition was not made in the traditional sense. Found of Playtech, Teddy Sagi, owns PT Turkey Services (PTTS) which is the holding company for Euro Partners. Therefore, Playtech paid Sagi 140 million Euros for PTTS thus acquiring Euro Partners.

Additional payments are due through 2014 depending on the success of PTTS who earned 90 million Euros in 2010. With the continued success of Playtech, PTTS is expected to increase its earnings 13 percent by 2012. Based on these figures, Playtech is forecast to pay 280 million Euros for the company for all payments.

Currently Euro Partners boasts a portfolio of over 50,000 affiliates across its network. Therefore, the company is one of the biggest, most powerful acquisition, retention and marketing businesses in the online gaming industry. Acquiring PTTS will greatly strengthen Playtech’s position of producing online gaming solutions thus closing the gap to new entrants in the marketplace. Some of the most well-known current members of Euro Partners include:

  • Europa Casino
  • Vegas Red Casino
  • Casino Tropez
  • Titan Casino

Following the release of the results for the previous year, CEO Mor Weizer announced the acquisition of Euro Partners which creates a direct channel between operator, software provider and customer. Weizer continued by discussing that Playtech is not an all-inclusive operator and therefore will not be subject to additional taxation.

The objective of this acquisition is to give local brands access to the best software, affiliates and internet marketing channels in the industry. Therefore, this acquisition is not only advantageous for Playtech, but also for the local brands while providing a large platform from expansion.

The primary details associated with the acquisition are not complete with the red tape expected to be cut by the end of June 2011. Complete integration of  Euro Partners to Playtech is slated for the fourth quarter of 2011. During the 2010 fiscal year, Playtech saw revenues grow by 24 percent and profits rise 4 percent from the previous year.

As one of the industry’s leading online software provider, the addition of the largest casino affiliate program is sure to significantly increase their revenue for 2011. Playtech is expanding by leaps and bounds which appears to be helping many parties, not just their own company.

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