Zona de Azar UK – Playtech Secures Deal with Caliplay and Posts Update

UK.- September 17, 2024 www.zonadeazar.com Playtech has announced a new strategic agreement with Caliplay, a subsidiary of Caliente. The amended terms of the agreement will see Playtech holding a 30.8% equity stake in Cali Interactive, the new holding company for the Caliplay Group, which will be incorporated in the US.

As part of the agreement, Playtech will also have the right to appoint a director to Cali Interactive’s board and will receive dividends alongside other shareholders.

Additionally, Playtech has extended its business-to-business (B2B) software licence and services agreement with Caliplay for another eight years. In exchange, Cali Interactive will pay Playtech an additional $140m in cash, phased over a four-year period.

Playtech also reported that it has received more than 80% of unpaid fees from Caliplay, amounting to over €150m ($166m). The remaining balance is being held in escrow and is expected to be released by the end of 2025, or upon completion of the revised terms, subject to Mexican antitrust approval.

This approval is anticipated by the first quarter of 2025. All ongoing legal proceedings between Playtech, Caliplay and Caliente have been paused, with an agreement to dismiss these cases once the revised arrangements take effect.

In a trading update accompanying the announcement, Playtech noted strong financial performance in its B2B division during the first half of 2024, particularly in the Americas. As a result, the company now expects its 2024 Adjusted EBITDA to be slightly ahead of market consensus.

Mor Weizer, Playtech CEO, stated: “The revised arrangements mark the beginning of an exciting new chapter that will build on the impressive progress to date, with a view to driving significant further growth for Cali Interactive in the future.”

Earlier this year, Playtech announced partnerships with Betway and Hollywoodbets in South Africa, where it introduced casino and live casino products.

Edited by @pererarte   www.zonadeazar.com