Playtech PLC (LON:PTEC) earlier today announced it had reached agreement with Ladbrokes PLC (LON:LAD) over an early determination of amounts due to it under the marketing services agreement between PTTS and the Ladbrokes Group dated March 2013.
The sum due is put at a level of £75 million ($116.6 million).
This agreement has been reached with regards to the proposed merger of the Ladbrokes Group and the Coral Group unveiled on July 24, 2015, and is conditional upon completion of this merger.
With effect from Completion, Playtech shall become entitled to receive £75 million, of which £40 million shall be satisfied by way of the issue of shares in Ladbrokes on Completion and with a further guaranteed £35 million in cash paid upon delivery by Playtech of key operational milestones but, in any event, within 42 months following Completion.
This arrangement will provide Ladbrokes and Coral with the flexibility to achieve operational integration and realise synergies.
If the merger is not completed, the marketing services agreement will continue as before.
Separately, Playtech has committed to subscribe for approximately 22.9% of the 9.99% equity placing announced by Ladbrokes earlier today.
Mor Weizer, Chief Executive Officer of Playtech said:
“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. 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.”
A brief recap about the agreement signed in March 2013:
- Ladbrokes created a new, wholly owned, ecommerce and digital marketing services operation, based in Israel.
- A ‘Vegas’ tab was launched on Ladbrokes.com, offering a suite of Playtech casino and games products.
To view the official announcement by Playtech from today, click here.