Playtech snaps up Dundee-based Yoyo Games in $16m bolt-on acquisition

 
Oliver Smith
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Yoyo’s Game Maker: Studio software is currently used by over 750,000 developers
Gambling software firm Playtech yesterday announced it has bought Dundee-based games platform developer Yoyo Games in a $16.4m (£10.6m) deal.

Yoyo’s Game Maker: Studio software is currently used by over 750,000 developers creating multiplatform games for smartphones, PC or games consoles.

Playtech said the Yoyo acquisition “will complete a three-pronged strategy into the casual games market, including: the company’s experienced in-house games development studio; publishing of both in-house and third party games; and games technology, which includes Yoyo.”

The $16.4m deal will be funded from Playtech’s existing cash balances with an additional payment of up to $5.25m based on an earn-out consideration and a retention plan.

“Today’s acquisition is not the transforming deal investors are waiting for, but it does look like a sensible bolt-on,” wrote Peel Hunt analyst Nick Batram.

“Playtech is acquiring a technology platform that should extend its reach into what is a growing and substantial global industry.”

Shares in the group rose a slight 0.47 per cent yesterday to 741p.

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