Online gaming and financial services company Playtech plc (LON:PTEC) is now just online gaming services company Playtech, with the company announcing (see full text below) that it had closed the $250 million sale of its financial trading division, Finalto, to Hong Kong’s Gopher Investments.

The company said that the final consideration is subject to a “completion accounts adjustment” of up to $25 million in either direction, determined by the financial performance of Finalto from 1 January 2021 to completion. On the basis of the estimated completion statement for the relevant period, the current expectation is that there will be an adjustment resulting in a lowering of the net consideration in the range of $15-$20 million.

Completion of the transaction has also triggered payment of a breakup fee of $8.8 million, which Playtech is required to pay to the Consortium that had previously agreed to acquire Finalto, led by Israeli businessman Zvika Barinboim. The Barinboim group has come to an agreed purchase of Finalto, but the deal was rejected by Playtech shareholders and the group was then effectively outbid by Gopher.

Playtech’s Financial Trading division comprises the Finalto-branded institutional services business, and Retail FX/CFDs broker Markets.com. With the acquisition, Hong Kong based Gopher will become a major player in both the B2C and B2B ends of the FX and CFDs industry. Finalto produced Revenues of €32 million in the first six months of 2021.

The full statement issued today by Playtech reads as follows:

11 July 2022

Completion of the disposal of Finalto

Further to the announcement made on 30 June 2022, Playtech plc (“Playtech” or “the Company”) is pleased to announce the completion of the all-cash sale of its financial trading division (“Finalto”) to Gopher Investments (the “Transaction”).

Pursuant to the Transaction, the Company has sold Finalto to Gopher Investments for an enterprise value of US$250 million. As outlined in the announcement of the disposal on 29 September 2021, the final consideration is subject to a completion accounts adjustment of up to US$25 million in either direction, which is determined by the financial performance of Finalto from 1 January 2021 to completion. On the basis of the estimated completion statement for the relevant period, the current expectation is that there will be an adjustment resulting in a lowering of the net consideration in the range of US$15 million – US$20 million. This adjustment remains an estimate at this stage and will be finalised post completion in accordance with the actual completion accounts in line with the sale and purchase agreement.

Completion of the Transaction has also triggered payment of a break fee of US$8.8 million which Playtech is required to pay to the Consortium that had previously agreed to acquire Finalto, as announced in May 2021.

The completion of the Transaction is a significant step in Playtech’s stated strategy to simplify the group and to focus on its technology led offering as a pureplay business in the high growth B2B and B2C gambling markets. The sale proceeds will be used to repay the outstanding balance on its revolving credit facility with the remainder of proceeds used for general corporate purposes.

Playtech and Finalto dedicate completion of this transaction to Neil Offord, formerly CFO of Finalto and, latterly, a senior member of Playtech’s executive team.  Neil fought his illness with bravery whilst continuing to help steer the disposal of Finalto through to its conclusion and the Group is deeply grateful for his contribution to Playtech and Finalto, and to the success of this transaction, in particular.