Playtech will become the first winner of the Gala Coral Ladbrokes merger as the gambling technology provider is set to receive £75 million under a new marketing services and provisions agreement arranged with Ladbrokes Plc.
The £75 million sum will be paid to Playtech upon the completion of the merger. At present the technology firm currently acts as platform and igaming provisions provider for both operators.
Giving further detail on its agreed arrangement with Ladbrokes, Playtech noted that it would gain £40 million of the sum by way of a share issuance in Ladbrokes/Coral. A further guaranteed £35 million would be paid in cash upon the delivery of operational milestones within 42 months of the merger completion.
Playtech governance stated that the planned arrangement would provide both Ladbrokes and Coral with the flexibility to achieve efficient integrations and synergies.
Mor Weizer, CEO of Playtech commented on the arrangement
“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.”