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.