Playtech in talks to offload TradeTech division
London-listed supplier confirms interest from a “number of parties” over rumoured $250m sale
Playtech is weighing up offers for its strong-performing TradeTech subsidiary as it looks to bolster its cash position and capitalise on non-core assets.
The FTSE 250 firm confirmed it was in discussions with “a number of interested parties” after Israeli media outfit Calcalist revealed it had enlisted UBS Investment Bank to facilitate a sale.
Playtech reported “exceptional performance” in TradeTech during the first six months of the year, which helped to mitigate some of the supplier’s financial difficulties as EBITDA fell by 16%.
The division is rumoured to be priced between $200m (£151m) and $250m.
Updating investors, the London-listed supplier said it would continue to evaluate all options for TradeTech, including a potential sale, amid ongoing discussions.
“However, these discussions are at an early stage and there can be no certainty that any transaction will be forthcoming or whether acceptable terms will be agreed,” said Playtech.
TradeTech includes B2B solution TradeTech Alpha, Markets.com, a provider of CFD and FX trading to retail investors and MarketsX, a dedicated B2C brand for high-net worth clients.
Hedge fund activist and Playtech shareholder Jason Ader, who last week called for a merger between Playtech and US operator DraftKings, told EGR he would back the TradeTech sale.
“We support a sale at an attractive price,” said Ader. “The sale of TradeTech has been at the top of SpringOwl’s list of ways to unlock value for Playtech.
“The business has done well in 2020 and is non-strategic to the core gaming business. We believe demand for this asset is very high,” he added.