Slot-machine maker Aristocrat is buying gambling software developer Playtech for $3.7 billion, with plans to raise $964.2 million in a share sale to help fund the acquisition.
Aristocrat estimates the online gaming and sports betting market to be worth $70 billion and is looking to strengthen its position before that figure climbs even higher.
Playtech shares jumped more than 64% on the London Stock Exchange after the acquisition was announced.
The Australian-based Aristocrat has shown interest in sports betting before.
- In March, the company participated in a $15 million financing round for sports betting technology startup Simplebet.
- A year ago, Aristocrat CEO Trevor Croker said the company was looking to either “build or buy” its way into sports betting.
Croker said Aristocrat and Playtech will together focus on innovating in the space.
In a separate deal in September, Playtech agreed to sell Finalto, its financial trading division, to Gopher Investments for $250 million in an effort to focus on the “high-growth B2B and B2C gambling markets.”