Playtech Relinquishes Its SPAC Plans for Caliplay

The board of directors of gambling software developer Playtech announced that they are suspending their plans to publicly list Caliplay, the company’s joint venture with Mexico-based operator Caliente Interactive.

An Alternative Solution for Caliplay Is Still Possible

Earlier this year, Playtech revealed that it intended to merge Caliplay with a special-purpose acquisition company (SPAC) to go public. Caliplay is a joint venture between Playtech and Caliente, a leading Mexican gambling operator. The newly merged company would focus on attracting Latin American clients in the USA. 

However, Playtech stated they could no longer pursue the transaction in its current format. The company added that the decision was motivated by significantly deteriorating market conditions. Playtech noted that it had not given up on the idea but would pursue it via different means.

“The Company continues to explore alternative opportunities with Caliplay… to build a standalone US gaming business under the Caliente brand.”

Playtech board of directors

According to Playtech’s press release, both parties were still involved in discussions with the SPAC and its associates and were actively looking for alternatives. The company did not elaborate further and noted that negotiations were still in their infancy.

Playtech’s Board Was Confident in Future Growth

Playtech’s announcement concluded with an assessment of its current performance. The company noted that it was trading ahead of expectations. The growth primarily resulted from successes in the Americas, and the board acknowledged Caliente’s contribution to these favorable results. Italian betting and gaming firm Snaitech, a subsidiary of Playtech, showed excellent financial results amidst the post-COVID recovery of its retail business and booming online offerings. 

The board finished their statement confident about the company’s Q2 results, which will be announced on 22 September 2022. Later in the year, Playtech will hold an investor event focusing on the company’s B2B segment.

2022 Has Been Mostly Positive for Playtech

Even if the plans for Caliplay fail, 2022 has been very successful for Playtech. The company’s adjusted Q1 EBITDA sat at $105 million, almost rivaling the results for the first six months of 2021 ($130 million). The rise in profits was mainly due to Playtech’s expansion in Ontario and its successes in the Mexican market due to its partnership with Caliente.

TTB Partners, the company’s third-largest shareholder, planned to pursue acquisition talks but recently announced that it was abandoning its plans to acquire the online gambling and sports betting supplier. The Hong Kong-based investment and advisory firm explained its decisions to challenging market conditions. 

Back then, Playtech CEO Mor Weizer stated that the world economic situation was challenging and market conditions were very different than in February, echoing the company’s current stance on its plans for Caliplay.