Gopher Investments Plans to Acquire Finalto with $250 million in Cash
Fazzaco learned that Gopher Investments, a 4.97 percent shareholder in Playtech, has planned to acquire Finalto, formerly known as TradeTech Group, with $250 million in cash.
As Fazzaco earlier reported, Playtech has proposed to sell Finalto to a consortium led by Barinboim Group and backed by Leumi Partners Limited and Menora Mivtachim Insurance Limited. The total offer of $210 million includes an initial payment of $185 million, of which $15 million is deferred for up to two years from completion of the transaction, together with a further $25 million contingent on certain cash flow or other criteria being met by the business carried on by the Finalto group.
Being an all-cash upfront deal, the latest offer for Finalto looks more attractive. In addition, Gopher’s proposed valuation of Finalto represents a 47 percent premium to the base proposal to the consortium and a 35 premium to the guaranteed consideration of that offer. Gopher further highlighted that it is offering a 19 percent premium to the maximum consideration payable by the consortium. According to Gopher, the offer made by the consortium did not fairly reflect the value of Finalto’s attractive growth prospects.
Gopher has carried out a detailed review of Finalto from a range of publicly available resources. It now needs around 3 weeks for further limited due diligence before entering into a fully binding offer for Finalto.
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