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Aristocrat to expand into the RMG industry
During a presentation to the ASE (Australian Securities Exchange), Trevor Croker, the CEO of Aristocrat, confirmed the acquire of Playtech Plc by presenting their arguments in favor of this decision. To begin with, Trevor claims that this merge of organizations provides the parent company with the necessary assets to help solidify its place in the real money gambling industry. An industry that is showing no signs of stoppage in terms of growth by revenue and market size; in 2020 alone, it was reported that the gambling gaming segment reached a value of $70 Billion. Furthermore, the expectations are that it will grow over the next five years.
Tactical intelligence
Playtech Plc is the leading company in the industry of real money gambling platforms as well as business-to-business organization. Subsequently, Aristocrat is a well-known major contender for other gaming businesses. Their high-quality customer solutions services available globally coupled with well-engineered casino games make it a favorable parent company. Aristocrat executives believe that the combination of the two companies can benefit from sharing each other’s expertise. This comes from the fact that both companies are operating in interconnected segments. Therefore, the final conglomerate will be able to directly access the required assets and technology without further investment.
A better experience for customers
With the combined stability and experience of both companies, it is likely to lead a customer-oriented business more than before. As Aristocrat already is primarily customer solutions service, it can now build upon that model using the acquired resources. Furthermore, there is room for fresh innovations to cater to the global customer base with new ways of RMG and seamless user experiences.
Stakeholder gains and funding the acquisition
According to Aristocrat’s data analysis, acquiring Playtech’s assets will result in growth by 50% in the offline-based gaming segment alone. This comes as healthy news due to the fact that an increase in the market share equals more profits for the shareholders. Subsequently, this piece of data was crucial in convincing the shareholders to provide additional equity of $965 million to fund the acquisition. Firstly, $816 will be deposited along with a long-term loan of around $2 billion to seal the transaction.
Conclusion
Aristocrat is on its way to becoming the leading gaming company in new markets such as North America and Europe. This result comes from the fact that Playtech plc has had strong foundations in the B2B segments in those regions. Nevertheless, Aristocrat assures that this transaction will give birth to one of the best gaming as well as customer relationships organizations in the world. The formation of these companies, if all goes according to plan, will happen in the spring of 2022.
