Playtech confirms Finalto takeover approach
Playtech Plc has confirmed that it has entered discussions with an ‘Israel based consortium’ with regards to the sale of its Finalto financial trading unit.
The FTSE250 technology group issued a short statement confirming media speculation that it had entered talks to offload Finalto to a consortium formed by Barinboim Group, Leumi Partners Limited, The Phoenix Insurance Company Limited and Menora Mivtachim Insurance.
Playtech confirmed that it was reviewing a cash offer of $200 million, on which $170 million will be payable on completion of the deal.
In its statement, Playtech remarked that ‘approximately US$110 million of capital required to run the business will be transferred upon sale of the unit.
“Whilst discussions are progressing, there can be no certainty that any transaction will be forthcoming nor on what terms it would occur.” Playtech statement read.
Undertaking a group-wide review in 2019, Playtech governance placed all ‘non-core assets’ under sale, pledging to its investors that the company would return its focus towards gambling, having seen its share price tumble from its 2017 highs.
Finalto is the latest asset of Playtech’s 2017 multi-million M&A expansion into financial trading and FX, in which the company acquired TradeTech, Markets.com, MarketsPro and CFH Trading, forming its new division.
Further disposal of non-core assets saw the company divest its casual games studio YoYo Games to Norwegian games publisher Opera for $10 million.
Source: SBC News
