The online gambling software developer Playtech has announced plans to raise $219 million by placing 21.6 million new shares on the London Stock Exchange next week.
Playtech revealed that the proceeds from the float would be used to fund its acquisition plans including the purchase of certain affiliate marketing companies.
In a statement, the firm revealed that, while it believes a material portion of future growth could be generated organically, the company's Board had identified a number of acquisition opportunities that, if completed, would have the potential to accelerate the development of the company and add significant value.
'Playtech made strong progress in 2007 with all key performance indicators exceeding targets,” said Mor Weizer, Chief Executive Officer for Playtech.
“This progress has continued into 2008 with the company registering impressive month on month revenue growth. This performance has put the group in an ideal position to continue its growth strategy both organically and by acquisition.
“We have demonstrated our ability to leverage acquisitions and believe this placing will provide the group with an extremely strong balance sheet that will allow it to take advantage of further opportunities that the current market offers.”
Playtech stated that it would place up to 21,620,946 new ordinary shares on the market this Monday with Collins Stewart acting as its nominated adviser and broker.