Playtech agrees to Gopher Investments’ $250 million offer to buy Finalto

abdelaziz Fathi

Playtech has agreed to sell its Finalto brand to Gopher Investments, which confirmed its $250 million bid to acquire the supplier’s financial trading division.

The gambling and financial trading company had entered into a binding agreement to sell Finalto to its second-biggest shareholder, who had clashed with the company over Barinboim Group-led consortium’s $210 million offer.

The deal’s completion is subject to approval by shareholders and regulatory clearances, the company said. Gopher said they welcome “the unanimous support” of the Playtech Board and expects to complete the transaction in H1 2022.

Teresa Teague, Partner at TT Bond Partners, commented:

“Gopher has been impressed by the strength of Finalto’s business and management team and looks forward to working closely with the team to support the business in this exciting next stage of its evolution. 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.”

Playtech agreed in May with a Barinboim Group-led consortium to acquire the London-listed firm’s financial trading arm. However, the proposed $210 million bid for Playtech’s financial division Finalto collapsed in August after a majority of the gambling software company’s shareholders rebuffed the deal.

Playtech shareholders argued that the offer undervalues the business and rejected the deal at a special meeting. As a result, Playtech has terminated its share purchase agreement (SPA) with the consortium led by Israel’s Barinboim Group.

In an attempt to break the deadlock, the company has engaged in negotiations with its major shareholder Gopher Investments  regarding a proposal already on the table to acquire the business.

Gopher Investments, which holds a 4.97% stake in the gambling-technology provider, proposed to pay $250 million to acquire the unit. The business also offered to pay a break fee of $10 million to Playtech if the board changed its recommendation away from the consortium, but was nevertheless rejected.

Playtech raised questions with Gopher as part of its due diligence into the sweetened offer, adding that the bid is uncertain because it is non-binding and subject to a number of conditions. Based on this assumption, the FTSE 250-listed group didn’t change its recommendation, particularly as it didn’t receive interest in Finalto from other potential acquiring parties.

Playtech’s trading technology division has become a lucrative target this year as increased market volatility, led by Covid-19 chaos, boosted revenue. However, before that Playtech trimmed its profit guidance due to highly challenging trading conditions and a regulatory crackdown on risky trading products.

Finalto’s business includes TradeTech Alpha, created to deliver a B2B solution, Markets.com, a provider of CFD and FX trading to retail investors, and MarketsX, a dedicated B2C brand for high-net worth clients. Furthermore, it includes CFH Group, which Playtech acquired in 2016 in a $120 million deal.

 

Read this next

Retail FX

eToro is latest platform to suspend Terra’s LUNA, Binance resumes trading

Israeli social trading network eToro has become the latest platform to suspend trading on the Terra (LUNA) cryptocurrency in light of a market-wide downturn.

Industry News

UK court allows ThinkMarkets’ “obscure” B-book claims against IS Prime

“The Judge added that “Think did need to address the concerns expressed” as its counterclaim “suffers from a lack of detail, obscurity and potential inconsistency”.

Retail FX

Brazilian Broker XP launches crypto trading to 3.5M users

XP Inc (XP.O) is set to launch a crypto trading platform, dubbed ‘XTAGE’, as Brazil’s largest broker is looking to tap into the growing interest in trading bitcoin and other digital assets.

Retail FX

easyMarkets adds MT5 as demand for platform continues to grow

easyMarkets has joined a growing group of brokers in switching over to MetaTrader 5 (MT5), becoming the latest retail platform to incorporate the platform into its live trading infrastructure.

Institutional FX

SGX’s FX volume shines in a largely lackluster April

The Singapore Exchange (SGX) notched a healthy gain in its FX and indices volumes, despite seeing a wavering performance across commodity and securities segments.

Industry News

Devexperts webinar: Attracting retail traders with fractional trading

Following the successful webinar on introducing crypto to retail investors, Devexperts is returning to host a new one about fractional trading. 

Digital Assets

Relai to launch bitcoin debit card to unlock BTC via every purchase

To attract more retail investors to the crowdfunding project, Relai has promised 0% fees on transactions on the Relai app for those who invest €5,000 or more.

Digital Assets

Amid crypto meltdown, Tether reduces corporate debts in USDT reserves

Tether, which is closely affiliated with crypto exchange Bitfinex, has drastically reduced its holdings of commercial debt in its reserves over the last six months. Instead, the stablecoin issuer allocated most of its non-fiat reserves to Treasury bills, almost doubling assets in short-term government securities.

Industry News

TrustPay launches SEPA instant payments

” Our clients will now be able to make instant transactions with the immediate settlement of funds, which makes business more effective in today’s fast world.”

<