Gambling software firm Playtech has confirmed that it is in exclusive discussions with a consortium regarding the potential $200m sale of its Finalto, formerly TradeTech, financial services division.
Responding to recent press speculation in the Israeli media, the consortium comprises Barinboim Group, Leumi Partners Limited, The Phoenix Insurance Company Limited and Menora Mivtachim Insurance Limited.
This latest development comes after the group confirmed discussions regarding a sale of the division were continuing earlier this month, maintaining the company’s aim of simplifying its business and disposing of non-core assets.
Making the comments in a trading update documenting the full year performance for the period ending December 31, 2020, Playtech reported that it had a “very strong” year driven by an exceptional performance in the first half of the year, followed by a challenging H2.
The cash offer from the consortium is worth up to $200m, of which $170m is payable on completion. Approximately $110m of capital required to run the business will be transferred with the business upon any sale.
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.”
In its recent trading update, Playtech also confirmed that its business simplification ambitions had also seen the $10m divestment of YoYo Games, part of the discontinued casual and social gaming division. This sale means the group has now disposed of all its casual and social gaming assets.