Playtech have have purchased  gaming software firm, Virtue Fashion for a fee belileved to be 36 million pounds to strengthen their position  in online international bingo markets.

Collins Stewart says it sees the deal as “strategically compelling.”

The broker, which repeats its “buy” rating, says the deal makes Playtech a leading provider of bingo liquidity and provides the firm with an “important plank in any regulated markets strategy” and “significant cross-selling opportunities”.

Collins Stewart adds: “Playtech is now trading on 12 times 2010 estimated earnings, which do not capture the SciGames partnership or the benefit of new licensees and regulated markets. We see significant upside to earnings.”