Playtech is buying Swedish games studio Quickspin bringing ‘proven virtual slot machine games’ into its portfolio.
The cost will be six times Quickspin’s earnings before interest, tax, depreciation and amortisation (EBITDA) with a cap of €50m.
The payment will include an initial €24m for 100 per cent of the shares of Quickspin while the remaining maximum amount of €26m will be paid on an earn-out basis depending on Quickspin’s EBITDA in 2017 and 2018.
Stockholm-based Quickspin has brought over 20 video slot games to both the online and social gaming markets.
It reported €6m for the year ended December 31, 2016, along with €2.1m in EBITDA.
Mor Weizer, Chief Executive of Playtech, said: “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 Playtech family. Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the gaming division, together with discussions for selective bolt-on acquisitions in the financials division.”
Quickspin Founders Daniel Lindberg, Joachim Timmermans and Mats Westerlund will remain at the company for at least three years after the deal completes.