Gopher Investments Pulls Out of the Playtech Purchase Battle
Published: November 24, 2021
Gopher Investments has quit the race to purchase Playtech, although the deal to obtain Finalto, Playtech’s financial trading division remains unaffected.
Sky News reported at the time that the offer amounted to $4.03bn. Playtech has provided due diligence information to explore possible terms of a takeover proposal. However, Gopher has since quit the race to acquire the business and won’t make an official offer.
The company’s decision to withdraw from the acquisition race leaves two possible candidates to purchase Playtech. Aristocrat, an Australian slot gaming juggernaut, has agreed to do it and is still a favourite.
Still, another pretender has appeared to spice things up. JKO Play, an enterprise owned by Keith O’Loughlin and Eddie Jordan, has entered the game.
It made a preliminary offer and received due diligence information, but the talks are still in the early stages, so a firm offer is not a cinch.
Playtech has said it will continue to work with Aristocrat to carry out the agreement from October 2021. The regulatory approval procedure is in motion, aiming to complete the arrangement in Q2 2022.
Additionally, the Gopher’s decision to withdraw from the purchase battle won’t influence the previously agreed acquisition of Finalto. After rejecting the board-backed bid from the Barinboim Group, Playtech accepted to sell to Gopher for $250m.
The company asked the potential buyer a series of questions regarding ownership and links to China. They wanted to know whether anything would hinder the acquisition process.
Gopher provided initial answers but failed to clarify some issues, so the Playtech board wanted to continue supporting the Barinboim offer.
However, most of the shareholders voted against the bid, making the agreement between the companies effectively invalid. The rejection allowed the supplier to fully negotiate with Gopher Investments, ultimately accepting the offer, despite suspicions from Barinboim.
About the Playtech Acquisition
Playtech is a prominent online gaming software developer centered on delivering cutting-edge solutions to world-leading operators. There have been several candidates to take over its business.
The company agreed to sell the operations to Aristocrat in October 2021. Gopher Investments then expressed an initial takeover interest on October 21, 2021, making a larger bid of roughly $4bn.
However, they confirmed they wouldn’t follow up on the offer. The new developments leave only Aristocrat and JKO Play, Eddie Jordan-owned enterprise, in the game.