Playtech to Sell Financial Trading Division Finalto to Gopher Investments for $250M
🔑 Deal Overview:
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Buyer: Gopher Investments (private equity firm and Playtech’s 2nd-largest shareholder)
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Price: $250 million cash
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Expected Completion: H1 2022 (pending regulatory approval)
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Previous Attempt:
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May 2021: Agreement with consortium led by Israeli Barinboim Group for $210 million
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August 2021: Shareholders rejected Barinboim deal
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Playtech paid $8.8 million to Barinboim for breaking agreement
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🎯 Strategic Intent:
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Playtech CEO Mor Weizer:
“This transaction delivers on our strategy to simplify the group and focus on high-growth B2B and B2C gambling markets.” -
Playtech plans to use $130 million+ from the sale proceeds to reduce debt amid ongoing COVID-19 uncertainties.
📊 Financials:
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Finalto’s adjusted EBITDA loss in H1 2021: $0.6 million
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Playtech H1 2021 revenue: €457.4 million ($529.2 million), down 4% YoY
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Playtech post-tax profit in H1 2021: €54.6 million, significantly up YoY
🔜 Next Steps:
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Shareholder approval required before finalizing the deal
