Playtech, a company controlled by entrepreneur Teddy Sagi, is set to raise $300 million in its IPO on London’s AIM. The company’s pre IPO value is expected to total around $950 million.
Founded, in 1999, Playtech, which manufactures software systems for online gaming operators, posted a pretax profit of $35.6 million in 2005, up from $8.2 million in 2003. Company sales for 2003-2005 increased fourfold to $47.6 million.
Playtech licenses casino, poker, bingo and sports betting software to 37 online gaming groups that operate 89 online casinos, 16 internet poker rooms and 14 online online bingo sites. The company’s IPO will be managed by UK brokerage firms Collins Stewart and Seymour Pierce.
Playtech was originally established by NAV New Age Investments Ltd, a company controlled by businessman Teddy Sagi, which was delisted from the Tel Aviv stock in 2003, and three young entrepreneurs in their early 30s from central Israel. One of the three is Elad Cohen, former CEO at NAV and now marketing manager at Playtech. The other founders are believed to be Amon Ben Ziyon and Rami Beinish, currently Playtech CEO. Ben Tziyon and Cohen met during their military service at the IDF Central Processing Unit. Cohen started out in online pornography and was later introduced to Sagi by a mutual acquaintance, which paved the way for the latter’s investment in the new company. Ben Tziyon subsequently sold his stake in Playtech a year ago.
Playtech employed a staff of 230 as of December 2005, a third of whom focus on R&D activities. The company employs around 70 staff in Israel through its local marketing arm, Playtech Marketing. As with most online gaming companies, most of the company’s agencies operate out of various tax havens across the globe. It’s accounting and revenue collection operations are located in Cyprus while its servers are sited in Antigua. The company’s branch in Estonia employs 100 people, many of whom are also believed to minority shareholders.
Published by Globes [online], Israel business news - www.globes.co.il - on February 19, 2006