THE CRAIG DAVIES COLUMN
M&A crosshairs to fix on aggregators? Content aggregators are not yet receiving tempting offers to be acquired, but that could soon change, writes CRAIG DAVIES, Editor of CasinoBeats.
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This will undoubtedly change, but a scattergun approach will lead to undoubted failure. Shock, I know.
he revolutions on the wheels of the M&A train not only continue to turn at breakneck speed, it’s actually starting to feel like this locomotive is quickly becoming one of the oh-so familiar runaway varieties that are a staple of theme parks worldwide.
More modern, agile aggregators will triumph before the aforementioned carriages begin an inevitable deceleration, while those that fall into the old slots adage will be those that are left behind.
At the time of writing we have witnessed one further entrant, courtesy of a certain Dublinheadquartered operator juggernaut that has purchased 51% of MaxBet for €141m.
Quantity versus quality is a debate far too often thrown the way of slots studios, but this is also evident within the realm that we are currently discussing. Too many platforms seem far more interested with the numbers that they can boast, instead of the overall standard of the titles that they are able to integrate.
However, you don’t need me to ramble on and on about the plentiful transactions that are being witnessed on a global scale. I will simply ask if one key section of the industry - content aggregators - has thus far proven to be relatively immune to the acquisition bug?
That being said, each and every aggregation platform seems to be the ‘go-to for operators’, so maybe I’m completely wrong and potential purchasers can approach this like a novice picking up a dart for the first time.
This was certainly the opinion of one industry veteran, who for the purposes of this piece will remain anonymous, at the recent SBC Summit Barcelona. Despite this, aggregators have seemingly not fallen off the radar altogether, as his own company has been in the receipt of several approaches.
Nevertheless, as has been witnessed elsewhere in the industry, as more and more aggregators spring into life, and the inevitable crossovers occur, be that operators and/or markets served, mergers are simply bound to happen.
The view was expressed as aggregation continues to boom, and also in the knowledge that there have been sizable deals in the space - most notably, Kindred’s €320m purchase of Relax Gaming. Relax now offers access to a roster of more than 4,000 casino games, with content from 70 partner studios provided through its Silver Bullet and Powered By Relax programs.
It is not simply all about the content though, but, as previously alluded to, this must be of the highest standard. A strong global distribution network, the tech support offered, supporting features included and promotional tools available are just a smattering of the qualities of those that will first fall in the M&A crosshairs.
We have often seen aggregation businesses form part of a wider operation within a group, with the additions of iSoftBet and Pariplay by IGT and NeoGames respectively evidence of this. However, consolidation concerning those that you could say ‘specialise’ in this particular area has proven to be far from commonplace.
It remains to be seen how M&A will hit the aggregation scene, be it larger entities looking to enhance their product or operators witnessing the potential of cost-effective expansion, but as the proverb goes, ‘time is money’. And in this example, speed to market and agility could well be the key qualities for interested parties.
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