Playtech makes CAD12.25m investment in NorthStar

13th Feb 2023 12:24

(Sharecast News) - Gambling software development company Playtech said on Monday that it has made a CAD12.25m (£7.58m) strategic investment in NorthStar Gaming, an Ontario-based online casino and sportsbook operator.

Playtech has also agreed to extend its commercial arrangements with NorthStar.

The investment has been made by way of a convertible debenture that will convert into equity and warrants in connection with NorthStar's proposed reverse takeover of Baden Resources. Subject to completion of the deal, Playtech will own around 16% of the Toronto Stock Exchange-listed entity, and will also hold warrants giving it the right to further increase its stake beyond 20%.

Playtech chief financial officer Chris McGinnis will join the board of directors as a non-executive director, acting as the company's representative.

Playtech entered into a software and services agreement with NorthStar in December 2021, providing NorthStar with a suite of technology solutions, including the IMS platform, Casino, Live Casino, Poker and Bingo.

Playtech and NorthStar have agreed a 10-year extension to the term of that agreement, as well as the right to expand the agreement beyond Ontario and across the entire Canadian market. Playtech will also provide strategic advice to NorthStar.

Chief executive Mor Weizer said: "We are excited to expand our partnership with NorthStar and build on the early success of our existing software and services agreement. Playtech has extensive experience of what it takes to succeed in newly regulated markets, as demonstrated by the Group's strategic agreements in other markets across the Americas.

"We've been impressed by NorthStar's unique business model and product offering, and look forward to supporting them in their mission to become the market-leading online gaming platform in Canada."