In November Playtech announced a placing of over 46 million shares, with the intention of raising £100 million to finance acquisition opportunities and investments in new joint ventures.

London-based Ash Gaming develops game content primarily for online betting and gambling operators.

According to Playtech there are ‘significant combined benefits’ to be gained form the acquisition, including greater revenue opportunities and enhanced economics, as well as an ‘experienced and well respected’ senior team.

‘[Ash Gaming] have a fantastic reputation with their licensees for delivering class-leading and innovative content along with a growing presence both in the UK and internationally,’ says Mor Weizer, chief executive officer of Playtech.

He adds: ‘I am confident that given the historic performance and current run rate this acquisition will prove to be very attractive for Playtech’s shareholders.’

Under the terms of the deal an initial consideration of £15.5 million is due on completion, with an additional deferred payment of up to £7.5 million based on future performance.

For the year to date 30 April 2011, Ash Gaming recorded revenues of £4.2 million (up from £3.1 million in 2010) and adjusted EBITDA of £2.6 million.

Chris Ash, founder and chief executive of Ash Gaming, comments: ‘The strategic rationale for Ash Gaming to combine its successful content with Playtech’s industry leading offering was evident from the earliest or our discussions.

‘The combination of platform and game development will lead to Ash Gaming’s ideas coming to fruition earlier than would have previously been possible.’

The acquisition of Ash Gaming marks the fourth time Playtech has entered the M&A market in 2011.

The Isle of Man-based company began its dealings in January with the £5.5 million purchase of casino management software business Intelligent Gaming Solutions. Subsequent deals for PT Turnkey Services for £120 million, and mobile sportsbook company Mobenga, for £13.3 million, followed.