Ladbrokes Looking for a Merger with Playtech

Ladbrokes has begun looking into the possibility of a merger with one of the largest online software companies; Playtech. This well respected bookmaker's company has arranged for the investment banks UBS and Greenhill to look into the notion of a shared based merger. Simultaneous to this negotiation, Ladbrokes is also trying to attain a £240m takeover of the internet gaming company 888 Holdings.

One issue to consider in these negotiations is that Playtech has a five year joint venture agreement with William Hill, who are Ladbrokes competitors. While Ladbrokes spokesperson Ciaran O'Brien did not comment on the negotiation itself, he did state that Ladbrokes Chief Executive Officer, Richard Glynn "has a clear mandate to grow the company organically, and he's focused on that." O'Brien also specified that, "The board is also looking at other opportunities."

Playtech's stock has risen recently after decreasing by 5.3% this year bringing the company to an overall market value of £974 million ($1.56 billion). Playtech is making the best of it's assorted range of skills to progress in what is fast becoming an extremely competitive online gambling industry.

Ladbrokes wants to increase their online business and to use their experience to expand profits and their business opportunities. In the UK, the company is well respected, with the beginning being as far back as 1886. They have expanded so that their 14,000 employees are spread across five countries, attesting to the fact that it is the largest fixed-odds betting company. With over 2,600 betting shops, it is the foremost bookmaker's company in the UK, Ireland and Belgium. In addition, its internet services are available in 19 languages, dealing in 18 currencies with amazing security measures.