London-listed Playtech plc (LON: PTEC) announced on Wednesday that it has entered into an agreement for the sale of Finalto, its financial trading division, to Gopher Investments. The enterprise value is worth $250 million in cash, according to the note released through the London Stock Exchange’s website.
The completion of the transaction is expected in the first half of 2022, subject to the regulatory clearances and regular timetables, which also remain uncertain due to the Coronavirus pandemic. “Playtech’s intended use of proceeds would be to retain the consideration until there is clarity, and consequently reduce net debt in the interim,” the press release noted.
“We are very pleased to have successfully reached an agreement with Gopher regarding the sale of Finalto. This transaction delivers on our strategy to simplify the Group to focus on the high-growth B2B and B2C gambling markets. I would like to thank everyone at Finalto for their tremendous contributions to Playtech and wish them every success. We are pleased to recommend this transaction to our shareholders, and we remain well placed to capitalize on the exciting market opportunities ahead, driving sustainable growth for the benefit of all our stakeholders,” Mor Weizer, Playtech CEO, commented on the sale.
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Additional Completion Transaction Details
In other details of the transaction, net cash available to Playtech at completion will increase by approximately $242 million, subject to any completion adjustments. This is in addition to the EUR 40 million excess cash extracted during the first half of this year, the announcement said. “As a major shareholder in Playtech, Gopher is pleased to conclude a transaction delivering value for all shareholders and looks forward to working with the Playtech Board and continuing its constructive dialogue to support growth,” Teresa Teague, Partner at TT Bond Partners, stated about the Finalto’s sale in a press release shared with Finance Magnates.
According to the London Stock Exchange’s announcement, Finalto generated an adjusted EBITDA loss of $0.6 million for the H1 of 2021 financial year.
In mid-September, Finance Magnates reported on Playtech’s announcement of the appointment of Linda Marston-Weston as a new Non-Executive Director, who will join the company on October 1.