Playtech to complete sale of Finalto to Gopher in two weeks
Playtech, the London-listed gambling software developer, today said it expects to complete the sale of its financial trading division Finalto by mid-July 2022.
Gopher Investments acquired Finalto for the aggregate sum of $250 million in cash and the deal now enjoys full approval from Playtech’s board and relevant regulators.
Welcoming the announcement, the gaming tech developer said last month that the acquisition of its financial trading division was set to close this summer.
On August 18, Playtech shareholders rejected a competitive proposal from a consortium led by Israeli group Barinboim, which also tried to buy the division for $210 million. Nearly 70% of the votes cast were against the deal as shareholders argued that the offer undervalues the company.
At the time, however, the company founded by Teddy Sagi was skeptical of Gopher’s proposal but was forced to backtrack and engage with its minority shareholder, who owns a 5% stake in Playtech.
It’s time to focus on the games
After a months-long battle, Playtech’s board said it unanimously recommended in favor of the acquisition. The FTSE 250-listed group has not changed its recommendation, especially since it has not received interest in Finalto from other potential buyers.
During the year, Playtech refocused the business, with the sale of Casual and Social Gaming in January and the divestiture of Finalto expected to close later this month. The company recorded revenue of €1.21 billion for the twelve months to December 2021, up 12% from the €1.07 billion accumulated in the same period in 2020.
The strong performance was driven by B2B online growth, particularly in Latin America and at Snaitech. Underscoring its success, Playtech said revenue growth more than offset the hurdles encountered as a result of the COVID-19 pandemic. In particular, the B2B gambling segment grew by 11% to 554.3 million euros against 494.8 million euros a year earlier.
The gaming technology company has also laid the foundation for its US business to become one of its key growth drivers by doubling its revenue in the region. Playtech announced new deals that saw the brand expand its US presence to include live casino studios in New Jersey and Michigan.