Playtech, a leading supplier of online gaming and sports betting software, announced today that the company has entered into an agreement to sell its financial trading unit Finalto in a deal worth $210 million.
According to an official announcement, Playtech agreed to sell the unit to a consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Insurance Limited, together with key members of the Finalto Business' management team. Playtech mentioned that the total offer of $210 million includes an initial payment of $185 million, of which $15 million is deferred for up to two years from completion of the transaction, together with a further $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. Finalto's 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 $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."
Earlier this month, Playtech partnered with Holland Casino, one of the major casino operators based in the Netherlands. Playtech became the strategic technology supplier of the company.
Appointment of Brian Mattingley
In March 2021, Playtech announced the selection of Brian Mattingley as Non-Executive Chairman of the company. The technology supplier mentioned that the appointment of Mattingley will take effect on 1 June 2021. Playtech highlighted Mattingley’s broad experience and a proven track record in the online gambling industry. The company is planning to take advantage of Mattingley’s corporate governance skills to accelerate its growth.
Founded in 1999, Playtech is one of the leading suppliers of online gaming and sports betting technology. The company is listed on the main market of the London Stock Exchange . The technology provider has more than 6,400 employees across 24 countries.
