Playtech, the Isle of Man based software provider to the online, mobile, TV and land-based gaming sector, has acquired the business and assets of Virtue Fusion Limited, a developer and licensor of online bingo products.
The transaction transforms Playtech into the market leader in bingo, complementing its prominent position in poker and casino, and as content provider.
Founded in 1999, Virtue Fusion has developed into one of the most liquid bingo networks, with peak traffic of more than 6,000 concurrent players. As well as its core UK market, it has a growing international presence in other European countries and more than 20 licensees, including well known brands such as Mecca, William Hill, Ladbrokes, Virgin, Sky, Bet365, Paddy Power and Crown Bingo.
For Playtech, the acquisition significantly enhances its own bingo offering, brings new licensees and enhances its relationships with a number of existing licensees. It also positions Playtech as a leading supplier in all of the key product segments in the online gaming industry, with very substantial liquidity in each of its player networks.
As with poker, network player liquidity is an important element for bingo operators. By linking the operator’s bingo rooms across the network, Virtue Fusion can facilitate more frequent games being offered and higher prize values and jackpots for the same individual stake. Both Playtech and Virtue Fusion's existing licensees will therefore enjoy the benefits of increased liquidity when their networks are combined.
Bingo is a community-based game and bingo sites typically enjoy a loyal customer base with high player retention rates. Additional revenue is generated through side games including networked games such as slots and scratch cards played concurrently with the bingo games. Once integrated, the new bingo licensees will have access to an extensive number of slots and other games in Playtech's library.
Licensees will also benefit from the opportunity to integrate with Playtech’s highly sophisticated IMS information management system. This provides real-time player management, enhanced cross-selling and VIP management tools which can greatly enhance an operator’s opportunity for revenue growth.
Commenting on the acquisition, Mor Weizer, CEO of Playtech said, "The acquisition places Playtech in the leading position in international online bingo markets. It reflects our ongoing commitment to provide licensees with a comprehensive portfolio of best of breed gaming products.
"This is another significant enhancement of Playtech's product suite, bringing further liquidity and experience to our existing bingo offering and further strengthens our position as the pre-eminent software provider to the online gaming industry. This acquisition extends the Playtech licensee portfolio and further strengthens the relationships with various existing Playtech licensees.
"In a number of newly regulated markets, bingo is an embedded part of the social and gaming culture and a product which finds early favour with regulators. Consequently we see this acquisition as not only furthering what is already Playtech's competitive advantage in the growing online gaming market as a whole, but as having the potential to generate meaningful opportunities in newly regulated markets.
"We believe that the acquisition of Virtue Fusion creates value for Playtech shareholders and the board anticipates the transaction will be earnings accretive in 2010 and beyond."
Bob McCulloch, CEO of Virtue Fusion (Alderney) Ltd, commented, "We are delighted to be a part of Playtech. This deal will ensure our operators continue to benefit from the market leading VFA Bingo product and in addition can now profit from Playtech’s greater international reach and access to a wider games portfolio."
