TTB Partners Withdraws from Playtech Takeover Bidding

by Arnab Shome
  • The company cited “challenging underlying market conditions” behind its decision.
  • Earlier, Playtech shareholders rejected a £2.7 billion takeover bid from Aristocrat Leisure.
playtech

TTB Partners Limited confirmed on Thursday that it has no intention to bid for the acquisition of Playtech, citing the challenges underlying the market conditions.

The confirmation came ahead of the 17 July deadline before which TTB should have to clear its intentions of officially submitting a bid for Playtech. The two companies were in talks for the deal for several months.

“TTB remains supportive of the Board, the executive management team, their strategy for Playtech and the prospects for the business. TTB also intends to support the Board's efforts to maximize shareholder value,” the official press release stated.

A Company with a High Growth Perspective

In a response to TTB’s decision, Playtech highlighted the company’s excellent financials and stated that the board is “very confident about the positive long-term prospects.”

Indeed, the company reported a 12 percent revenue jump in 2021 as its B2B and B2C businesses strengthened. In addition, it posted an adjusted EBITDA of more than €100 million in Q1 2022.

“Playtech carries strong momentum going into H2 2022 and continues to perform very well across its core B2B and B2C businesses,” said Mor Weizer, the CEO of Playtech.

“This performance reflects the quality of our market-leading technology offering and the hard work and commitment of our talented team. We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements that are already allowing Playtech to access newly opened gambling markets.”

Playtech initially received a £2.7 billion takeover bid from Australia’s Aristocrat Leisure. Though 56 percent of Playtech shareholders approved the deal, it needed the nod of at least 75 percent. However, that paved the way for TTB, which officially revealed its interest in the gambling technology provider last February.

Though TTB is not bidding for Playtech, its subsidiary Gopher Investments recently completed the acquisition of Finalto, which was Playtech’s financial division, in a $250 million all-cash deal.

TTB Partners Limited confirmed on Thursday that it has no intention to bid for the acquisition of Playtech, citing the challenges underlying the market conditions.

The confirmation came ahead of the 17 July deadline before which TTB should have to clear its intentions of officially submitting a bid for Playtech. The two companies were in talks for the deal for several months.

“TTB remains supportive of the Board, the executive management team, their strategy for Playtech and the prospects for the business. TTB also intends to support the Board's efforts to maximize shareholder value,” the official press release stated.

A Company with a High Growth Perspective

In a response to TTB’s decision, Playtech highlighted the company’s excellent financials and stated that the board is “very confident about the positive long-term prospects.”

Indeed, the company reported a 12 percent revenue jump in 2021 as its B2B and B2C businesses strengthened. In addition, it posted an adjusted EBITDA of more than €100 million in Q1 2022.

“Playtech carries strong momentum going into H2 2022 and continues to perform very well across its core B2B and B2C businesses,” said Mor Weizer, the CEO of Playtech.

“This performance reflects the quality of our market-leading technology offering and the hard work and commitment of our talented team. We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements that are already allowing Playtech to access newly opened gambling markets.”

Playtech initially received a £2.7 billion takeover bid from Australia’s Aristocrat Leisure. Though 56 percent of Playtech shareholders approved the deal, it needed the nod of at least 75 percent. However, that paved the way for TTB, which officially revealed its interest in the gambling technology provider last February.

Though TTB is not bidding for Playtech, its subsidiary Gopher Investments recently completed the acquisition of Finalto, which was Playtech’s financial division, in a $250 million all-cash deal.

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.
  • 6240 Articles
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