Playtech scraps SPAC plans for Caliplay

The board of game software developer Playtech has announced that it is suspending plans to publicly list Caliplay, the company’s joint venture with Mexican operator Caliente Interactive.

An alternative solution for Caliplay is always possible

Earlier this year, Playtech revealed plans to merge Caliplay with a special purpose acquisition company (SPAC) to go public. Caliplay is a joint venture between Playtech and Caliente, a leading Mexican gaming operator. The newly merged company would focus on attracting Latin American customers to the United States.

However, Playtech said they could no longer proceed with the transaction in its current format. The company added that the decision was prompted by a significant deterioration in market conditions. Playtech noted that it hasn’t abandoned the idea but will pursue it through different means.

The company continues to explore other opportunities with Caliplay…to build a standalone game business in the United States under the Caliente brand.

playtech board of directors

According to Playtech’s press release, both parties were still involved in discussions with SPAC and its associates and were actively seeking alternatives. The company gave no further details and noted that negotiations were still in their infancy.

Playtech’The board was confident in future growth

Playtech’s announcement concluded with an assessment of its current performance. The company noted that it was trading ahead of expectations. The growth was primarily driven by success in the Americas, and the Board of Directors recognized Caliente’s contribution to these favorable results. Italian betting and gaming company Snaitech, a subsidiary of Playtech, posted strong financial results amid the post-COVID recovery of its booming retail and online offerings business.

The board of directors ended its statement with confidence in the company’s second quarter results, which will be announced on September 22, 2022. Later in the year, Playtech will host an investor event focused on the B2B segment of the society.

2022 has been mostly positive for Playtech

Even if Caliplay’s plans fail, 2022 has been very successful for Playtech. The company’s first-quarter adjusted EBITDA came in at $105 million, nearly matching results for the first six months of 2021 ($130 million). The increase in profits was mainly due to Playtech’s expansion in Ontario and its success in the Mexican market through its partnership with Caliente.

TTB Partners, the company’s third-largest shareholder, planned to continue acquisition negotiations, but recently announced that it was abandoning plans to acquire the online gambling and sports betting provider. The Hong Kong-based investment and advisory firm explained its decisions under tough market conditions.

At the time, Playtech CEO Mor Weizer said the global economic situation was difficult and market conditions were very different from February, echoing the company’s current stance on its plans for Caliplay. .