William Hill’s Buyout of Playtech Confirmed Today

The buyout deal between William Hill and Playtech has been confirmed, at a cost of £424 million. The deal will see Playtech relieved of its 29% share in William Hill Online, and will see William Hill complete its second major acquisition in less than three months, after it announced the purchase of Australian Sportingbet back in December. The move will mark a major turning point in the history of the bookmaker, as they not only take full control of their online interests but also continue their spread into other international betting markets.

Around £375 million towards the buyout will be raised by a fully underwritten Rights Issue, at the rate of two shares to every nine existing shares (equating to 245p per share), and another £50 million will be raised from the 2012 Bridge Credit Facility. According to a press release given by William Hill CEO Ralph Topping, he is confident with the terms, and “pleased with the indications of support from shareholders”, and has declared the Rights Issue is the most “appropriate” way to raise the funds.

Playtech are also happy with the proposed deal, despite initial worries that the acquisition of Sportingbet would cause tension between the parties. The end of this relationship, which begun four years ago at an estimated cost of £250 million under previous Playtech majority shareholder Teddy Sagi, will see Playtech bag a healthy profit for the start of 2013.

Playtech saw their gross income increase by a whopping 51% in 2012 thanks to their increased profits which came from their William Hill interest, yet current Chief Executive Mor Weizer is confident the move is coming at the right time, and that the Board “looks forward to 2013 with confidence.”

All is good for Will Hill however, as the buyout annoucement has seen William Hill's shares shoot up by +25 points today. Track them here.