GAMBLING software firm Playtech's shares soared by more than 50 per cent yesterday after the firm agreed to a £2.7bn takeover by Aussie outfit Aristocrat.

The acquisition is the latest in a string of high-priced transactions in the gambling space as global players look to line up for a run at the lucrative US market.

"This transaction marks an exciting opportunity in the next stage of growth for Playtech, and delivers significant benefits to our stakeholders, including our customers, our shareholders and our incredibly talented people," said Playtech's chief executive Mor Weizer.

The offer represented a 58 per cent premium on Friday's closing price and markets responded with a 57 per cent jump today.

Aristocrat, an Australian gaming company with operations in 90 countries, manufactures gambling machines for physical casinos.

The takeover will allow them to capitalise on Playtech's online gambling software which many regard as amongst the best in the business.

"The recommended offer is a full and fair value and reflects the strategic potential of the combination in a global gaming sector that continues to migrate online, as a result of technology and entrenched consumer-driven change," said Aristocrat's chief executive Trevor Croker.

Playtech has been on the end of concerned investor pressure in recent years, most notably from Jason Ader, the US-based CEO of SpringOwl Asset Management and one of the firm's largest shareholders.

Recently he told City A.M. that he thought Playtech represented a tempting target.

Late last night he told City A.M. that the "deal represents a compelling alignment of strategic interests and validates our long-held view of the value of Playtech."

Ader said the completion of a deal would be a significant victory for new chairman Brian Mattingley, formerly of 888.

The deal would allow further investment into Playtech, Ader said.

(c) 2021 City A.M., source Newspaper