Playtech and Ladbrokes agree £75m services settlement
Supplier to receive £75m from an early determination of fees due from a previously agreed marketing services deal
Playtech will receive £75m from an early determination of its marketing services agreement with Ladbrokes upon completion of the operator’s proposed merger with Gala Coral, the company has announced.
Following this morning‘s news that Ladbrokes and Gala Coral have agreed terms on the proposed merger, Playtech said it will obtain the agreed £75m figure from a combination of £40m of new shares issued in Ladbrokes and £35m in cash.
The cash will only be delivered if Playtech hits key operational milestones based upon an agreement between the two companies dated March 2013, and if the deal between Ladbrokes and Gala Coral fails to be completed, the marketing services agreement will continue in its current form.
“Both Ladbrokes and Coral are key licensees of the Group and we have been delighted to assist Ladbrokes in the turnaround of its online operations, again demonstrating the strength of Playtech’s turnkey offering,” Playtech CEO Mor Weizer said.
“We look forward to continuing our strong long term relationships with both groups and expect to play a key role in their future success, both before and after their proposed merger,” he added.
In related news, Ladbrokes announced this morning it is to place over 92 million new shares, 9.99% of its existing issued ordinary share capital, of which Playtech will subscribe to approximately 22.9% of.