Gambling software developer Playtech has announced plans to spend up to $55.6 million in order to purchase Swedish online games studio Quickspin.

Isle Of Man-based Playtech revealed that it will pay a maximum consideration of six times Quickspin’s annual earnings before interest, tax, depreciation and amortization in 2017 and 2018 beginning with an initial investment of $26.7 million. It will then take control of all the developer’s shares on a cash-free and debt-free basis before the remaining amount comes fully due on an earn-out basis late in 2018.

Headquartered in Stockholm, Quickspin’s portfolio consists of over 20 games that it provides to more than 40 customers including many international tier-one operators. It generated annual revenues of just over $6.6 million in 2015 while its adjusted earnings before interest, tax, depreciation and amortization came in at $2.3 million although these are forecast to grow thanks to a number of new customers and a pipeline of fresh games.

As part of its agreement, Playtech declared that Quickspin’s founders, Daniel Lindberg, Joachim Timmermans and Mats Westerlund, are to remain with the business for at least three years after completion.

“We are delighted to welcome Quickspin into the Playtech group,” said Mor Weizer, Chief Executive Officer for Playtech. “Quickspin is a fast-growing and leading supplier of the highest quality games to the highest quality operators, strengthening Playtech’s position as the leading platform and content provider in the industry. We look forward to working with the Quickspin team and to see the Quickspin brand continue to flourish within the Playtech family.”

Playtech stated that the acquisition would provide it with “a proven virtual slot machine games portfolio” and strengthen its position as “the leading content provider in the industry” while giving it “greater penetration in the Nordic region”. It plans to distribute Quickspin’s content through its existing distribution channels across all verticals and remains on watch for other such purchases.

“Playtech remains in active discussions for a number of other bolt-on acquisitions as well as larger acquisitions in the gaming division, together with discussions for selective bolt-on acquisitions in the financials division,” said Weizer.