Delivering on a promised strategy of a pivot to core business operations, Israel’s market-leading Playtech has agreed to sell its Finalto financial trading arm to an all-Israeli consortium led by the Barinboim Group and backed by Leumi Partners and Menora Mivtachim Insurance in a deal worth an estimated US$225 million (£159m/€184m).
The deal, which enjoys the support of the Finalto management team, comprises a down payment of US$185 million (£131m/€151.6m), a second payment of US$15 million deferred for two years (£10.62m/€12.29m) and a performance bonus of US$25 million (£17.7m/€20.48m).
Playtech’s revenue, slumped 25 per cent to US$1.31 billion (£933m/€1.08bn) last year, as earnings were hammered by Covid lockdowns.
It led this March to Playtech announcing a radical new business strategy: While others are buying, Playtech is selling.
“[This week’s] announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximise value and certainty for shareholders,” said Chief Executive Mor Weizer.
“The sale offers a good outcome for all stakeholders in the Finalto business, providing certainty for colleagues, customers and trading counterparties.”
Playtech has also announced a positive update for the four months, ending April 30; with strong performance in key US, Latin American and European markets.
This included securing new deals with the Greenwood companies in the US and Holland Casino in the Netherlands.
Two Playtech products In Latin America–Caliente in Mexico and WPlay in Colombia–experienced further momentum. Playtech tie-ins in Guatemala, Costa Rica and Panama also played well.
In further news, Playtech has decided to migrate its tax residency to the UK and the company has announced that Brian Mattingley is its new Chairman.