Leading online casino company Playtech has finally confirmed the sale of its Finalto financial trading division. It is reported that Finalto sold for an impressive $210 million. This comes after months of speculation about whether or not the division will be sold. Playtech will now place its focus on its technology-led offerings across B2B and B2B gambling verticals.
Sale In Line With Strategy
According to Playtech, the sale of Finalto is in line with the firm’s strategy to simplify its online casino operations. Furthermore, with the capital raised from the sale, Playtech has been able to unlock a significant amount of capital and in so doing, increase the stability of its cash flow and predictability.
It is anticipated that the completion of the deal with happen before the year’s last quarter. This transaction is supported unanimously across Playtech’s board. All members agree that this sale is in the best interests of shareholders.
Mor Weizer, the CEO of Playtech, said in a statement that the firm has begun implementing a strategy to simplify the group’s focus. This is aimed at helping to maximise the value and certainty for all of its shareholders. He also added that the sale will offer all stakeholders a positive outcome, and that the new purchasers have a strong understanding of Finalto, its business and its market.
Logistics Of The Sale
Finalto’s purchasers are led by the Barinboim Group and is backed by Menora Mivtachim Insurance, as well as Leumi Partners. Between them, the cash offer has grown to $210 million, which comprises of an initial payment of $185 million. $15 million of this will be deferred for up to two years from the date of the deal’s completion.
If the acquisition of Finalto were to be completed within the current trading environment, Playtech’s intended use of the proceeds would be used to retain consideration until there is further clarity, and then further reduce the debt moving forward.
As a first-class transaction, the sale is only conditional upon approval from all the online casino groups shareholders. Furthermore, this is conditional upon the approval of specific regulatory authorities.
Weizer also said that the company has been building momentum within its business, and Playtech’s progress in key markets over the past 12 months serves as testament to this. The firm believes that the new agreements it has signed during this period further demonstrates its capability as a leading provider of online casino software and technology and will accurately convey the kinds of opportunities that it intends to offer in future.