Business
Proposed sale of financial trading division
Proposed sale of financial trading division.
About this update from Playtech Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 4111N\n Playtech PLC\n 29 September 2021\n \n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION; IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \n \n \n \n \n FOR IMMEDIATE RELEASE\n \n \n \n \n \n 29 September 2021\n \n \n \n \n \n \n \n \n Proposed sale of financial trading division (\"Finalto\") to Gopher Investments for US$250 million\n \n \n \n \n \n \n \n \n Playtech plc (\"Playtech\" or \"the Group\") is pleased to announce that it has entered into an agreement for the sale of its financial trading division (\"Finalto\") to Gopher Investments (\"Gopher\" or the \"Purchaser\") for an enterprise value of US$250 million in cash (the \"Transaction\" or the \"Disposal\"). \n \n \n \n \n \n Key highlights\n \n \n \n \n \n · \n Disposal remains in line with stated strategy to simplify the Group and unlocks significant capital for Playtech\n \n \n · \n Conclusion of an extensive process, allowing Playtech to focus on its technology led offering as a pure play business in the high growth B2B and B2C gambling markets \n \n \n · \n Increases predictability and stability of cash flows for the remaining Group\n \n \n · \n Consideration comprises an all cash offer, payable on completion of the Transaction (\"Completion\"), with no contingent or deferred elements\n \n \n \n \n \n Financial highlights and use of proceeds\n \n \n \n \n \n · \n Agreement to sell Finalto to Gopher for US$250 million\n , \n which represents an enterprise value to Adjusted EBITDA multiple of:\n \n \n o \n 28x FY2019 Adjusted EBITDA and 7x FY2018 Adjusted EBITDA, being the last full years prior to 2020 which was impacted by the one-off COVID-19 benefit in Q1 2020\n \n \n o \n 49x trailing twelve month period ended 30 June 2021 and 4x FY2020 Adjusted EBITDA\n \n \n · \n For the first half of the 2021 financial year, Finalto generated an adjusted EBITDA loss of US$0.6 million\n \n \n · \n 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 (\"Completion Adjustment\"). The Completion Adjustment is intended to have...