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(Alliance News) -Â Playtech PLC on Wednesday expressed confidence over the remainder of 2021 and said it has agreed to sell its financial trading division for up to USD210 million.
The business, called Finalto, is being sold for a fixed amount of USD185 million, of which USD15 million is deferred for up to two years from completion. A further USD25 million is contingent on the business meeting certain targets.
The sale is being made to a consortium led by Barinboim Group and backed by Leumi Partners and Menora Mivtachim Insurance, together with "key members" of the division's management team.
"Looking forward, Playtech will focus on its technology led offering in B2B and B2C gambling, driven by our online expertise and supported by a strong balance sheet. We have been building momentum in our business, as highlighted by our progress over the last twelve months in key markets such as the US, Latin America, and Europe," said Chief Executive Mor Weizer.
Playtech said that if the transaction completes and the trading backdrop is still lacking "clarity" due to the pandemic, it will retain the consideration funds and pay down debt. Should it receive the proceeds in the fourth quarter as expected, and clarity is greater then, the firm is "committed to returning capital to shareholders when appropriate".
Shares in the gambling software development company were up 0.6% at 458.00 pence in London on Wednesday.
In a separate trading update ahead of its annual general meeting being held on Wednesday, Playtech said it has continued to make progress so far in 2021, including in its key target growth markets of the US, Latin America and Europe.
Playtech said it expected at the start of the year that retail lockdowns in its major markets, including Italy and the UK, would last throughout most of the first quarter. While retail in the UK has reopened, it noted, closures in Italy have dragged on longer than expected, and are currently anticipated to continue to at least the end of the first half.
However, online growth has remained "very strong".
"Whilst the Covid-19 pandemic continues to pose challenges and the macroeconomic outlook remains uncertain, given the strong start to the year the board is confident of the company's prospects for the remainder of 2021, while mindful of the possibility for further unexpected lockdowns," said Playtech.
By Lucy Heming;Â lucyheming@alliancenews.com
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