Last updated: October 01, 2024
Playtech has announced a new agreement with Caliplay, securing a 30.8% equity stake in Cali Interactive and extending its B2B services contract for eight years. The deal involves $140 million in additional payments and has suspended existing legal disputes. Playtech reports strong B2B performance and expects its 2024 Adjusted EBITDA to exceed market expectations.
Playtech has announced a new strategic deal with Caliplay, owned by Caliente, comprising a multimillion equity stake and a long-term business cooperation. According to the new conditions of the deal, Playtech will receive a 30 percent stake in F1’s virtual division. Caliplications: 8% ownership in Cali Interactive, the holding company of the Caliplay Group, to be incorporated in America.
In exchange, Playtech will receive the ability to nominate a director to Cali Interactive’s board and a stake in the corporation with access to its dividend. Further, the existing business-to-business, software license and services agreement with Caliplay has been renewed for eight more years for the company’s operation. In exchange, Playtech gets the stakes and an additional $140 million in cash for four years ahead from Cali Interactive.
Playtech also revealed that the company received overdue fees from Caliplay for over €150 million ($166 million), more than 80 % of that amount. The rest is in escrow and is expected to be released by December 2025, subject to the approval of Memx antitrust and the signing of the altered agreement terms.
Playtech has declared a considerable advancement in cooperation with Caliplay, Caliente’s branch. In the new proposed change to the agreement, Playtech will own 30%. A $460,000 8% equity stake in Cali Interactive is the newly formed holding company for Caliplay, which will be set up in the US.
Under the agreement, Playtech will receive the right to nominate a director to Cali Interactive’s board of directors and its dividends. Playtech has also granted Caliplay an eight-year contract for business-to-business software licenses and services, and Cali Interactive will pay Playtech an additional $140 million for the next four years.
The various peer reviews of the models incorporated in the revised agreement are expected to be completed by the first quarter of next year, 2025. Regarding the new terms, the current legal relations between Playtech, Caliplay, and Caliente have been temporarily suspended, and the parties have agreed not to proceed with their cases once the new terms are set.
In its trading update, Playtech reported robust performance in its B2B division for the first half of 2024, particularly in the Americas. The company now anticipates its 2024 Adjusted EBITDA will exceed market expectations.
Playtech CEO Mor Weizer commented that the revised arrangements mark the beginning of an exciting new phase. This phase will build on the company’s current progress and drive substantial growth for Cali Interactive.
Earlier this year, Playtech also partnered with Betway and Hollywoodbets in South Africa, expanding its casino and live casino offerings in the region.
