Playtech Receives Regulatory Approvals for Finalto Sale

Wednesday, 15/06/2022 | 07:06 GMT by Arnab Shome
  • The company is targeting to close the deal with Gopher by 30 June 2022.
  • Gopher offered $250 million for Finalto in an all-cash deal.
playtech

Playtech announced on Wednesday that it had received all the regulatory approvals necessary to complete the sale of its financial trading division, Finalto (previously TradeTech), to Hong Kong-based Gopher Investments.

This update came after Playtech shareholders approved Gopher’s all-cash offer of $250 million for purchasing Finalto, which operates brands like Markets.com. The green light from the shareholders came last December, and the two companies were targeting to close the deal by the first half of 2022.

“In line with the sale and purchase agreement with Gopher Investments, the Company now expects completion to occur on 30 June 2022, being the last day of the month in which regulatory approvals were received,” the latest announcement stated.

Playtech is one of the major technology providers of online gaming platforms. The company detailed that the sale of Finalto is a step to simplifying the group’s strategy. In addition, it wants to focus on a technology-led offering as a pure-play business in the B2B and B2C gambling markets.

Moreover, the firm is doing very well on the business front and is focused on expansion. In fact, Playtech reported a 12 percent revenue jump in 2021 as both B2B and B2C businesses strengthened. It even reported an adjusted EBITDA of more than €100 million.

Takeover Talks

Meanwhile, Playtech is in takeover talks with Gopher’s parent TTB Partners, which represents a group of investors. Playtech’s CEO, Mor Weizer, and the former Director, Thomas Hall, approached TTB expressing their interest to participate in the investor group that is planning to make the offer.

Despite being in talks for months, TTB is still evaluating Playtech’s position and has not made any offer at present. However, Playtech has clarified that TTB needs to confirm its interest before the deadline of 17 June.

Earlier, Playtech shareholders rejected a £2.7 billion acquisition bid by Australia’s Aristocrat Leisure that paved the way for TTB to take an interest in the technology provider .

Playtech announced on Wednesday that it had received all the regulatory approvals necessary to complete the sale of its financial trading division, Finalto (previously TradeTech), to Hong Kong-based Gopher Investments.

This update came after Playtech shareholders approved Gopher’s all-cash offer of $250 million for purchasing Finalto, which operates brands like Markets.com. The green light from the shareholders came last December, and the two companies were targeting to close the deal by the first half of 2022.

“In line with the sale and purchase agreement with Gopher Investments, the Company now expects completion to occur on 30 June 2022, being the last day of the month in which regulatory approvals were received,” the latest announcement stated.

Playtech is one of the major technology providers of online gaming platforms. The company detailed that the sale of Finalto is a step to simplifying the group’s strategy. In addition, it wants to focus on a technology-led offering as a pure-play business in the B2B and B2C gambling markets.

Moreover, the firm is doing very well on the business front and is focused on expansion. In fact, Playtech reported a 12 percent revenue jump in 2021 as both B2B and B2C businesses strengthened. It even reported an adjusted EBITDA of more than €100 million.

Takeover Talks

Meanwhile, Playtech is in takeover talks with Gopher’s parent TTB Partners, which represents a group of investors. Playtech’s CEO, Mor Weizer, and the former Director, Thomas Hall, approached TTB expressing their interest to participate in the investor group that is planning to make the offer.

Despite being in talks for months, TTB is still evaluating Playtech’s position and has not made any offer at present. However, Playtech has clarified that TTB needs to confirm its interest before the deadline of 17 June.

Earlier, Playtech shareholders rejected a £2.7 billion acquisition bid by Australia’s Aristocrat Leisure that paved the way for TTB to take an interest in the technology provider .

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6420 Articles
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