GTECH S.p.A. subsidiary GTECH UK Interactive Ltd. will buy all current and to-be-issued shares in U.K. mobile gaming developer Probability PLC, a move that GTECH President of Products and Services Renato Ascoli said is a 'significant step in GTECH's ongoing efforts to meet the mobile gaming needs' of its customers.
PROVIDENCE – GTECH UK Interactive Ltd., a wholly owned subsidiary of GTECH S.p.A., has reached an agreement to acquire Probability PLC, a mobile gaming company based in London.
Under the terms of the acquisition, expected to be completed by mid-2014, GTECH UK will purchase all issued and to-be-issued shares in Probability, a total value of approximately £17.5 million ($29.2 million) or £0.50 (83 cents) per diluted share.
“This acquisition is a significant step in GTECH’s ongoing efforts to meet the mobile gaming needs of our World Lottery Association and commercial customers,” said Renato Ascoli, president of products and services for GTECH S.p.A. “The combination will generate operational synergies, primarily in R&D and games development. Technical integration and the resulting impact on time-to-market for Probability’s solutions is expected to progress rapidly as GTECH is a current customer in Italy and, as such, is integrated into Probability’s platform.”
Founded in 2004, Probability has developed more than 30 games (including high-definition games) compatible with more than 3,500 mobile devices, including tablets, and serves between 800 and 1,000 different devices every day. Probability is licensed in Italy, Gibraltar and the U.K., and is currently developing systems for the United States.
Probability employs about 45 people and reported net gaming revenue of £3.6 million ($6 million) for the six-month period ended Sept. 30, 2013. As of that date, the company had a net cash position of £1.7 million ($2.8 million).
“Having recognized the significance that mobile would play in the gaming sector earlier than most in the industry, Probability has invested the time and capital into technology and developed a deep understanding of mobile gaming dynamics,” said Probability CEO Charles Cohen. “We enter into this transaction with the expectation that our combined knowledge and resources will drive future growth in mobile gaming for our customers.”
“The lottery industry is quickly evolving into the interactive space, and GTECH is ensuring lotteries stay at the forefront of this movement with the development of the mobile app, a first-of-its-kind in the United States,” said Matteo Monteverdi, GTECH senior vice president of iGaming, in a release announcing the app’s launch.