Gambling software company Playtech has reported that it is in exclusive negotiations with a consortium about the proposed sale of its financial services subsidiary Finalto, formerly TradeTech, for $200 million.
The consortium includes Barinboim Group, Leumi Partners Limited, The Phoenix Insurance Company Limited and Menora Mivtachim Insurance Limited, in response to recent press speculation in the Israeli media.
Simplifying its business
This new development comes after the group announced that talks continued earlier this month about the division’s disposal, retaining the company’s goal of simplifying its business and disposing of non-core properties.
‘Very strong’ year
Commenting on the full year results for the period ending December 31, 2020 in a trading update, Playtech announced that it had a “very strong” year led by an excellent success in the first half of the year, followed by a difficult H2.
$200m cash offer
The consortium’s cash offer is worth up to $200m, $170m of which is payable upon completion. Upon any sale, approximately $110m of capital needed to operate the business would be transferred to the company.
Disposal of non-core assets
Documenting the sale talks, the company explained: “As Playtech has announced previously, including in its trading update on January 12, 2021, it is a strategic focus of the company to simplify its business and dispose of non-core assets, and as such it has been continuing to evaluate all options for Finalto.
“Whilst discussions are progressing, there can be no certainty that any transaction will be forthcoming nor on what terms it would occur. A further announcement will be made if and when appropriate.”
Playtech also reported in its latest trading update that its market simplification ambitions had also seen the $10 m divestment of YoYo Games, part of the discontinued division of casual and social gaming. This sale means that all its casual and social gaming properties have now been disposed of by the company.