- London-listed gaming technology company to acquire 30.8% stake in Cali Interactive
- The company will also receive an additional $140 million (£106 million) from Cali Interactive.
Playtech shares soared today after reaching a revised agreement with Mexican gambling operator Caliente Interactive over their Caliplay joint venture.
The FTSE 250-listed gaming technology group said the deal will see it take a 30.8 per cent stake in Cali Interactive, Caliplay’s new holding company.
The deal will also give the London-based company the power to appoint a director to Cali Interactive’s board of directors.
The FTSE 250-listed gaming technology group said the deal will see it take a 30.8 per cent stake in Cali Interactive, Caliplay’s new holding company.
After the update, Playtech shares rose 12.5 percent to 736 pence in early afternoon trading.
It will also sign a revised B2B software licensing and services agreement for a term of eight years.
The company also said it will receive an additional $140 million (£106 million) paid in cash from Cali Interactive, gradually over a four-year period.
Playtech added that “Caliplay continued to deliver a strong performance in the first half of 2024.”
The revised agreement ends a bitter dispute between the two, who had been at odds over unpaid fees.
Caliplay has also resumed paying Playtech its software and services fees, with more than €150 million (80 percent of the total) already paid.
Mor Weizer, CEO of Playtech, said: ‘The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology.
‘With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well positioned to achieve strong growth in our B2B business in the years ahead.’
Emilio Hank, President of Caliplay, added: “We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to expand our geographic presence, while continuing our mission to deliver the best gaming experiences to our customers in Mexico and beyond.”
In August, it was revealed that Paddy Power owner Flutter was in talks to buy Playtech’s Italian subsidiary Snaitech in a £2bn deal.
According to Sky News, Flutter is close to reaching a deal, which is likely to be finalised on Monday.
A source close to the matter told the outlet that the announcement could be delayed until later this week.
