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laytech agreed to sell financial trading division Finalto to a consortium led by Barinboim for up to $210 million, of which $101 million will enter the bank accounts of the online gambling company.
The deal was made based on a “locked box” closing mechanism, which means the buyer will sustain the results, whether gains or losses, of the whole year 2021.
The consideration for Finalto comprised cash of $185 million, of which $15 million was deferred for up to two years and $25 million contingent on certain cash flow or other criteria being met. In turn, Playtech will leave $109 million with Finalto, thus making the effective deal worth $101 million for Playtech, according to Financial Feeds.
Mor Weizer, CEO of Playtech, stated: “Playtech has a stated strategy to simplify the Group and today’s announcement is the conclusion of a two-year process in which Playtech has explored all routes to maximize 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 twelve months in key markets such as the US, Latin America, and Europe,” he continued.
“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,” Weizer concluded.
The financial trading division offers multi-channel trading software, systems, and liquidity services in a B2B capacity to its global partner network. The firm helps retail brokers to license its proprietary trading platform, CRM software, back-office, and business-intelligence systems, and use its exclusive liquidity technology for multi-asset execution, prime brokerage services, liquidity, and trading tools.
Finalto has readopted its offering, the firm now offers brokers access to each of its technology solutions individually and customized service for brokers depending on their size and needs, where they can acquire only a piece of tech and still add more if they wish to do so. The firm is also adding DMA equities to its offering later this year.
