The disposal, says that gambling tech firm, is in line with a strategy to simplify the group’s operations; will unlock significant capital; and increase predictability and stability of cash flows.
Playtech mentioned that the total offer of $210 million includes an initial payment of US$185 million, of which US$15 million is deferred for up to two years from completion of the transaction, together with a further US$25 million contingent on certain cash flow or other criteria being met by the business carried on by the Finalto group.
Finalto, the financial division of Playtech, remained one of the most profitable units for the company in the last few years. Its key management team includes Group CEO Ron Hoffman, Group COO Liron Greenbaum, Group Interim CFO Jeremy Schlachter and Group Chief Compliance Officer Stavros Anastasiou.
By the end of December 2020, Playtech held approximately US$139 million of cash related to Finalto’s regulatory and operating requirements on the Group’s balance sheet.
Commenting on the latest announcement, Mor Weizer, CEO of Playtech, said: “Playtech has a stated strategy to simplify the Group, and today’s announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximize value and certainty for shareholders from Finalto.”
“The sale also offers a good outcome for all stakeholders in the Finalto Business, providing certainty for colleagues, customers and trading counterparties. The Consortium has a deep understanding of the Finalto Business and the markets in which it operates, and we wish our colleagues every future success,” Weizer added.
Source: GMB
