Playtech announced that an offer has been made to acquire its financial trading division for up to $ 200 million.
An online gaming software provider has confirmed that a management consortium supported by Israeli investment and insurance companies has made a cash offer for Finalto, which will be paid $ 170 million upon closing.
Of the fee, approximately $ 110 million of capital required to run the business will be transferred upon completion of the sale.
The consortium is backed by the Barinboim Group, Leumi Partners Limited, The Phoenix Insurance Company and Menora Mivtachim Insurance.
Finalto is a technology-based division in the contracts for difference (CFD) and financial trading industry that operates on both a B2B and B2C basis.
Playtech has been evaluating the future of its trading department for over a year and has confirmed that it was researching potential sales in August when it was known as TradeTech.
In a statement, Playtech said: “The company's strategic goal is to simplify operations and get rid of non-core assets, so it continues to evaluate all Finalto options.
"While discussions are ongoing, there can be no assurance that any transaction will occur, or under what conditions it will take place."
In its trade update earlier this month, Playtech confirmed that it was in talks to sell Finalto, but also mentioned that it had a "very strong 2020" and that the division was "outstanding in the first half" of fiscal 2020.
Finalto's revenues increased by 123% year-on-year to EUR 87.3 million (USD 105.8 million) in H1, despite the supplier's overall revenue drop by 23% in the six months to June 30, to EUR 564 million.