Playtech Gets No Bid From Investor Group, Has No Fallback Suitors

Maybe Playtech should’ve stuck with its Australian beau. That’s because today, the Isle of Man-based online gambling software supplier got a “no intention to bid” notice from the investor group for whom it dumped a $3.7 billion offer from Australia-based Aristocrat Leisure.

Tomorrow was the deadline for Hong Kong-based TTB Partners Limited to relay an offer from an investor group it represented.

Instead, word arrived today from TTB’s parent company, TT Bond Partners, that there would be no bid.

Playtech’s shares plunged more than 18%.

Playtech Jilted by TTB’s Investor Group

At the beginning of the year, Playtech had three suitors interested in buying it.

On Groundhog Day, the board declined Aristocrat’s offer. Days before, London-based investment and acquisition company JKO Play decided against purchasing it.

Until today, TTB’s client was mulling an acquisition.

However, just before the London markets opened, TT Bond Partners released this statement:

TTB Partners Limited (“TTB”) today confirms that due to challenging underlying market conditions it is not intending to make an offer for Playtech … TTB remains supportive of the Board, the executive management team, their strategy for Playtech, and the prospects for the business. TTB also intends to support the Board’s efforts to maximise shareholder value.

Prettying Itself Before the Expected Bid

On Monday, Playtech sold Finalto in order to be a pureplay iGaming vendor. Finalto is a financial software and services company.

Shanghai-based Gopher Investments bought Finalto for $250 million. 

Rid of Finalto, Playtech could concentrate on its online gambling products.

In the US online casino sector, it provides live dealer products to Bet365 in New Jersey and PlayGunLake in Michigan.

While Malta-based Evolution is the primary US live dealer vendor online casino operators hire, Playtech is mainly known as a game content provider. Its B2B portfolio includes online casino, poker, bingo, and sports betting games.

Also, Playtech offers online gambling operators more products and services. The company site calls it a “one-stop shop for gaming operators.”

Playtech Looks in the Mirror

The statement Playtech released four minutes after TT Bond’s press release has an almost self-soothing tone.

Playtech said:

Playtech had an excellent H1 2022 with Adjusted EBITDA expected to be more than €200 million. The performance was driven by both the B2B and B2C businesses. The B2B performance has been driven by very strong momentum from the Americas, in addition to a strong performance across the wider B2B operations, including Live Casino. Snaitech had an excellent first half driven by its online business, retail recovery and favourable sports results.

The excellent first half results and momentum in the business gives the Board great confidence in the Company’s prospects for FY 2022 and beyond, and the Company’s ability to deliver material value to its shareholders. Additionally, the Board continues to consider options to maximise shareholder value.

The announcement calls Snaitech “the No. 1 sports brand across retail and online betting in the Italian market.”

Weizer Didn’t Talk About the Group

In February, Playtech CEO Moran Weizer was looking into joining the investor group that bowed out of bidding today.

However, Weizer didn’t mention that in his statement today:

Playtech carries strong momentum going into H2 2022 and continues to perform very well across its core B2B and B2C businesses. This performance reflects the quality of our market-leading technology offering and the hard work and commitment of our talented team. We remain confident in our long-term growth prospects and, in particular, our ability to benefit from the structured agreements that are already allowing Playtech to access newly opened gambling markets.

Today’s surprise probably isn’t the last astonishing event Playtech will present to the online gambling world. After all, the company’s revenue comes from creating thrilling experiences.