Share prices of London Stock Exchange -listed Playtech plc (LON: PTEC) jumped almost 57 percent as trading activities opened on Monday. The big push in demand resulted from the confirmation of Playtech’s acquisition by the Aussie slot machine maker, Aristocrat Leisure.

Bidco, a wholly-owned subsidiary of Aristocrat Leisure, has agreed to pay 680 pence ($9.35) per share in an all-cash deal to become the new owner of the online gambling software giant. The offered price is 58 percent higher than the closure price of Playtech stock on Friday.

Monday morning's rally of Playtech stock was fueled by both retail and institutional demand for the stock.

Dimensional Fund Advisors Ltd disclosed today that it had purchased 12,148 shares of Playtech at a price of £4.29. The fund already holds more than 10.7 million Playtech shares, making it a 3.5 percent stakeholder in the company.

Following the acquisition confirmation, Peel Hunt analysts raised the target price of Playtech from 600 pence to 680 pence. The company share is trading at 674 pence, as of press time.

A Leading Gaming Tech Provider

Playtech was founded by the Israeli billionaire, Teddy Sagi in 1999. With the internet boom, the company became a leading technology provider for online gambling and betting platforms. The company went public in 2006, and Sagi sold his entire stake in the company in 2018.

The acquisition of Playtech will help the Australian company to broaden its product line and will benefit from Playtech’s presence in North America and Europe. Additionally, it is expecting to realize additional earnings per share in the high single digits in the first year after purchase.

“The business will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online segment as they continue to open up, particularly in North America,” said Aristocrat CEO, Trevor Croker.

Furthermore, the Playtech Chief, Mor Weizer believes that the acquisition “has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners, and bolsters our technological capabilities.”

Share prices of London Stock Exchange -listed Playtech plc (LON: PTEC) jumped almost 57 percent as trading activities opened on Monday. The big push in demand resulted from the confirmation of Playtech’s acquisition by the Aussie slot machine maker, Aristocrat Leisure.

Bidco, a wholly-owned subsidiary of Aristocrat Leisure, has agreed to pay 680 pence ($9.35) per share in an all-cash deal to become the new owner of the online gambling software giant. The offered price is 58 percent higher than the closure price of Playtech stock on Friday.

Monday morning's rally of Playtech stock was fueled by both retail and institutional demand for the stock.

Dimensional Fund Advisors Ltd disclosed today that it had purchased 12,148 shares of Playtech at a price of £4.29. The fund already holds more than 10.7 million Playtech shares, making it a 3.5 percent stakeholder in the company.

Following the acquisition confirmation, Peel Hunt analysts raised the target price of Playtech from 600 pence to 680 pence. The company share is trading at 674 pence, as of press time.

A Leading Gaming Tech Provider

Playtech was founded by the Israeli billionaire, Teddy Sagi in 1999. With the internet boom, the company became a leading technology provider for online gambling and betting platforms. The company went public in 2006, and Sagi sold his entire stake in the company in 2018.

The acquisition of Playtech will help the Australian company to broaden its product line and will benefit from Playtech’s presence in North America and Europe. Additionally, it is expecting to realize additional earnings per share in the high single digits in the first year after purchase.

“The business will be ideally positioned to unlock sustainable shareholder value by seizing opportunities in the fast-growing global online segment as they continue to open up, particularly in North America,” said Aristocrat CEO, Trevor Croker.

Furthermore, the Playtech Chief, Mor Weizer believes that the acquisition “has the potential to enhance our distribution, our capacity to build new and deeper relationships with partners, and bolsters our technological capabilities.”