Playtech Prepares to Sell Financial Division for 200 Million Dollars

Playtech, one of the world’s leading providers of software and content for online casinos, is currently in talks with potential suitors regarding the sale of Finalto, its financial trading division.

The potential buyers are represented by a management consortium backed by a few important Israeli investment businesses: private equity firm Barinboim Group, banking business Leumi Partners, and insurance giants Phoenix Company and Menora Mivtachim.

The buyers have made a cash offer worth 200 million dollars for Finalto, formerly known as TradeTech Group. The financial trading division of Playtech offers both B2B and B2C solutions, including the successful foreign exchange trading portal Markets.com.

Finalto had good performances in 2020, benefitting from increased market volatility and high trading volumes amid the effects of the novel coronavirus pandemic.

Playtech has been considering selling its financial trading division since November 2019, when the company’s leaders decided to focus more on the core activities and convert the others into cash.

The company has already sold all its casual and social gaming assets, they received 10 million dollars for YoYo Games from Norwegian software business Opera in January.

Despite the difficulties brought forward by the novel coronavirus pandemic, Playtech expects to record earnings of around 300 million euros for 2020, according to a company trading update for the London Stock Exchange.

Last year Playtech managed to reach some important milestones. One of those moments was the entry into the United States market, through a partnership with BetMGM. The company also increased its presence in Latin America through partnerships with Caliente in Mexico, Wplay in Colombia, along with other deals for Guatemala, Costa Rica and Panama.

The European market has produced good results as well, as the company’s subsidiary in Italy, Snaitech, has registered substantial growth. Playtech was founded in 1999 in Estonia and has grown into a global company, employing over 5,900 people all around the world and providing software and live dealer games for the biggest online casinos.

SOURCE: . Reuters. January 25, 2021.