Playtech reveals discussions over sale of Finalto

Playtech reveals discussions over sale of Finalto

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Posted by: AffPapa
Playtech

Playtech Plc has entered discussions with an ‘Israel-based consortium’ concerning the sale of its Finalto financial trading unit.

The FTSE250 technology group issued a brief statement verifying media speculation that it had entered negotiations to jettison Finalto to an association formed by Barinboim Group, Leumi Partners Limited, The Phoenix Insurance Company Limited and Menora Mivtachim Insurance.

Playtech claimed it was going over a cash offer from the Consortium of up to $200 million, of which $170 million will be paid upon completion of the deal. It added that about US$110 million of capital that is needed to run the business will be handed over with the business upon any sale.

“Whilst discussions are progressing, there can be no certainty that any transaction will be forthcoming nor on what terms it would occur,” read the statement.

Tackling a group-wide review back in 2019, Playtech governance placed all ‘non-core assets’ under sale in pledging to its investors that the company would restore its focus towards gambling, having seen its share price collapse from its 2017 highs.

Finalto is the most recent asset of Playtech’s 2017 multi-million M&A expansion into financial trading and FX, in which the company obtained TradeTech, Markets.com, MarketsPro and CFH Trading. Further disposal of non-core assets witnessed the company give away its casual games studio YoYo Games to Norwegian games publisher Opera for $10 million.