Playtech may sell its finance arm for $200M

One of the world's largest online casino software providers, Playtech, is in exclusive talks over a possible sale its financial and trading division Finalto. A consortium of several large Israeli investment companies is interested in the purchase. According to preliminary estimates, the total amount of this deal could be about 200 million US dollars.

According to insiders, the consortium enjoys the support of a number of high-ranking Israeli investors. These include private equity firm Barinboim Group, investment and merchant banking business Leumi Partners, and insurance giants Phoenix Insurance Company and Menora Mivatchim Insurance.

It is noted that the future fate of the Finalto unit has been discussed since November 2019. Then Playtech announced its desire to analyze its work and make appropriate operational decisions, including the sale. As early as last August, the company announced that it was in talks with a number of stakeholders about a possible deal.

During the first half of 2020, amid increased market volatility and frequent disruptions caused by the novel coronavirus, Finalto's performance improved significantly. However, after the markets stabilized in the second half of last year, the division's performance began to fall again.

At the same time, the Playtech press office stated that so far none of the sales negotiations have come close to the final stage. The company's management is not sure that this deal can be officially closed in the near future.

Experts added that Playtech's desire to sell its important asset confirms the brand's desire to simplify operations by reducing non-core departments. This has already led to the company selling all of its PC and social gaming developments, including closing a $10 million YoYo Games deal with Norwegian business software company Opera in January 2021.

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