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NetPlay TV Signs Five Year Deal with Playtech Raising £12.8 Million

July 16th, 2009

NetPlay TV / Playtech Deal

In one of the biggest bingo partnership deals ever inked in the history of the game, NetPlay TV and Playtech have come together, in a strategically significant 5-year agreement, to offer a combined suite of internet bingo and casino offerings.

NetPlay TV has garnered a lot of positive feedback for its interactive gaming solutions; as per terms of the deal NetPlay will move all of its existing online gaming brands to the Playtech platform and also provide Playtech licensees with new interactive gaming solutions. NetPlay has managed to raise over £12.8 million (nearly $20.6 million) in a discounted private placement clause incorporated as part of the agreement. NetPlay TV owns and manages popular online brands including Supercasino, Bingos and EuroTeleMillions.

Playtech chief executive Mor Weizer said that the 5 year agreement with NetPlay would propel them to the premier position in the live gaming market segment. He commented, “We believe ‘live’ gaming is going to be very big in the coming years and, as such, a significant investment in this business makes perfect sense. This agreement enables us to offer our licensees unique TV quality gaming shows, [and] enrich their offering to gamers”.

This agreement is expected to give some much needed liquidity to Playtech’s bingo platform. One of Playtech’s biggest licensees Betfred is reportedly in talks with Virtue Fusion for a complete platform switch over, which could have a negative impact on the liquidity position of Playtech. However, with the addition of NetPlay’s online bingo brands this expected erosion of liquidity has been evaded for the time being.

NetPlay hopes that this strategic investment in their business will help them drive forward the development initiatives for converged gaming solutions. The private placement is being done at a 10% discount from the company’s closing stock price on July 8, 2009; this roughly translates to 22 pence.

The cash injection is proposed to be accomplished by issuing 58.4 million new shares equivalent to 29.9% of the issued share capital of the company to a separate investment vehicle called DirectForce Trading. One of the major stakeholders in Playtech is the owner of this investment vehicle. As per prevailing law this private placement will have to receive the requisite approvals from the shareholders of the company. In this regard, NetPlay has stated that it has received irrevocable commitments from shareholders, which constitute about 43% of the total issued share capital of the company(before the private placement), to vote in favor of the resolution to the effect, A general body meeting of all shareholders is expected to be convened shortly.

NetPlay TV Signs Five Year Deal with Playtech Raising £12.8 Million

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