Playtech buys out Tribeca's European assets

Playtech's recent $75 million acquisition of rival Tribeca's assets has made the company one of the world's largest gaming software and platform providers.

The move comes just days following Tribeca's announcement that it would no longer accept U.S. customers, and gives Playtech ownership of the company's European-facing poker platforms. Within six months of the deal going through, the entire Tribeca network will cease operations.

In 2005, the assets acquired by Playtech generated gross profits of $5.3 million. This includes Web sites VC Poker and Scandinavian gambling site Expekt, among others.

In a release, the company said it hopes to capitalize on synergy and save money on migrated licensees, and up revenue with increased player liquidity and the introduction of Playtech's casino games.

The deal will also expand the company geographically, as the online gambling industry struggles to make up for lost revenues stemming from October's Unlawful Internet Gambling Enforcement Act in the U.S.

"This is a landmark deal for Playtech, which in one move, transforms the company into the world's leading poker network that excludes U.S. players," said Playtech CEO Avigur Zmora. "Both Tribeca and Playtech are committed to a smooth transitional period to ensure that migrating licensees can continue to offer the most attractive poker environment for their players."

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