Playtech to acquire Quickspin for €50 MillionJune 16
Software development company Playtech has finalized a deal to acquire Quickspin, a games studio out of Stockholm that specializes in developing high-quality video slots.
You will have heard the name Quickspin associated with some beautifully made games like The Three Musketeers, The Wild Chase and the whimsical Sugar Trail.
Playtech provides turnkey packages for online casinos, which include software, hosting, customer service, and transaction management.
€50 Million Acquisition
The agreement will see Playtech pay a maximum consideration of six times Quickspin’s earnings before tax, depreciation and amortisation (EBITDA), capped at €50 million (or $55.9 million).
The maximum consideration of €50 million comprises an initial payment of €24 million for 100% of the shares of Quickspin on a cash free/debt free basis with the remaining maximum consideration of €26 million calculated on an earn-out basis payable with reference to Quickspin’s EBITDA in 2017 and 2018.
There are currently over 20 games in Quickspin’s portfolio – which encompasses both real-money and social gaming markets - and the company counts international tier 1 operators among its 40 or so customers.
Quickspin Brings In €6M In Revenue
Quickspin generated revenue and adjusted EBITDA of €6.0m and €2.1m respectively in the financial year ending 31 December 2015 and is forecast to grow significantly over the coming years, with a number of new customers and new games in the pipeline.
The acquisition will provide Playtech with what it called a proven games portfolio, with plans to distribute Quickspin’s content across all verticals in its existing channels.
Founders to Stay On
The deal also includes a provision that means that Quickspin founders and industry veterans Daniel Lindberg, Joachim Timmermans and Mats Westerlund will be bound to stay on at the company for at least three years following the acquisition.
Mor Weizer, Chief Executive Officer of Playtech, said:
“We are delighted to welcome Quickspin into the Playtech group. 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.
“We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playetech family”.