Playtech has entered into an agreement for the sale of its financial trading division, Finalto, to a consortium led by Barinboim Group and backed by Leumi Partners and Menora Mivtachim Insurance.
The cash offer from the consortium is up to US$210m, comprising an initial US$185m of which US$15m is deferred for up to two years from completion of the transactio, together with a further US$25m contingent on certain cash flow or other criteria being met by the business carried on by the Finalto group.
Mor Weizer, CEO of Playtech, commented: "Playtech has a stated strategy to simplify the group and this announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximise 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.
"Looking forwards, Playtech will focus on its technology led offering in B2B and B2C gambling, driven by our online expertise and supported by a strong balance sheet. We have been building momentum in our business, as highlighted by our progress over the last 12 months in key markets such as the US, Latin America and Europe.
"The agreements we have signed with new customers in this period further demonstrate our capability as a leading technology provider and show the type of opportunities we intend to convert in the future."
