Online Casino Firm Playtech Buys Into Tribeca

Published: Monday, November 13, 2006 Online-Casinos.com

ONLINE CASINO FIRM PLAYTECH BUYS INTO TRIBECA

$75 million deal a landmark for Playtech

In a deal described as a landmark for the company, online casino software provider Playtech has announced the purchase of part of rival poker software provider Tribeca Tables for $75 million (£39 million)

The deal brings with it a number of Internet gambling sites currently operating on Tribeca's software platform, including VCPoker, PaddyPower Poker, Blue Square Poker and Scandinavian group, Expekt.

Playtech said the deal was in line with its strategy of extending its geographical reach, after the United States effectively banned online gaming financial transactions at last month.

"This is a landmark deal for Playtech, which in one move, transforms the company into the world's leading poker network that excludes U.S. players," said Playtech Chief Executive Avigur Zmora.

Playtech also announced third-quarter income from non-U.S. players increased to 53 percent from 49 percent a year earlier.

"On the basis that the company (Tribeca) will generate about $16 million over the coming year from the migration date, the consideration to be paid for Tribeca will be $75 million," Playtech said in a statement.

"The maximum consideration that the company will be liable to pay is $139 million, which will be paid in the event that the revenue generated from this acquisition exceeds $29 million over the coming year from the migration date," it added.

Playtech shares closed at 190 pence on Friday, valuing the group at around 407 million pounds.