The group has entered into an agreement for the sale of Finalto 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.
The cash offer is up to $210m, comprising an initial $185m, of which $15m is deferred for up to two years from completion of the transaction, together with a further $25m contingent on certain cash flow or other criteria being met by the business carried on by the Finalto group.
The transaction is expected to be completed in Q4 2021, and will increase Playtech's unrestricted cash by approximately $200m, with up to an additional deferred $40m of cash proceeds to follow.
Playtech highlighted the strength of its online businesses throughout the first four months of 2021, with US progress a key element to this strength after the company signed a strategic multi-state, multi-product deal with the Greenwood companies, and subsequently launched in Michigan with further launches planned later in 2021 and 2022.
The group also announced plans to build a Live Casino facility in Michigan, and expects to have facilities operational in Michigan, New Jersey and Pennsylvania later in 2021.
The previously announced appointment of Brian Mattingley as Chairman designate meanwhile is expected to take place on 1 June 2021, with Mattingley taking over from Interim Chairman Claire Milne. The previously announced decision from the company to migrate its tax residency to the UK has also become effective.
“I am delighted by the strong performance Playtech has delivered so far in 2021, despite the ongoing challenges posed by the pandemic,” said Playtech CEO Mor Weizer. “The sale of Finalto delivers on our strategy to simplify the company. Our technology and product offering is unrivalled and we have a clear growth strategy to expand the geographic reach of our core B2B business.
“We believe that due to the hard work and dedication of our employees, Playtech will exit the pandemic stronger than ever,” added Weizer. “Looking ahead, we are confident that the simplified group and the exciting growth opportunities ahead will deliver significant value to shareholders.”
