Playtech Share News (PTEC)

(ShareCast News) - Playtech announced on Friday that it has acquired bingo software and hardware solutions provider ECM Systems.The FTSE 250 company said ECM supplies software and support services to the UK retail bingo market, including major operators Gala Leisure, Mecca Bingo and the leading independent bingo operators.Playtech has paid approximately £14.9 million for 90% of the issued share capital of ECM."This is a significant step in strengthening and expanding our Playtech ONE offering within the bingo sector and we look forward to working with Allen and the whole ECM team," said Playtech chief executive Mor Weizer.The company's board said ECM is "highly regarded" within the bingo industry, and its extensive range of products is "instrumental" to the daily operation of retail bingo in the UK and the Republic of Ireland.Its systems provide facilities for Main Stage Bingo, Cash Bingo, wide area linked gaming operations and front-of-house reporting, with its customer support facility providing technical and repair services for all current and legacy products.The last few years have seen ECM invest in expanding its digital strategy, Playtech's board explained.It said that as a result, ECM is the leading provider and licensor of digital bingo software for a wide range of handheld tablets known as Electronic Bingo Terminals, generating a significant proportion of its revenues.The acquisition of ECM positions Playtech at the forefront of the retail bingo market in the UK, the board said, while also empowering Playtech to provide omni-channel solutions to the bingo operators by connecting their retail and online operations as well as providing a platform to supply Playtech content.For FY 2016, ECM reported revenues of £9.1m and adjusted EBITDA of £4.5m.The remaining 10% of the company not owned by Playtech, which is subject to put and call options capped at £1.1m, is held by Allen Richardson who will remain as CEO of the business for the next three years."ECM has a leading position within the bingo hall sector, including its extensive range of handheld devices that enable players to enjoy a digital experience within a familiar retail environment," Weizer added.