Playtech ditches Caliplay SPAC merger amid capital markets deterioration

Playtech has abandoned its plan to spin off its Caliplay JV in a SPAC merger, with the firm citing “significantly” deteriorated capital markets since the transaction was first proposed.

Under the proposed plans, Playtech explored the possibility of divesting the JV, in partnership with Caliente, with the business merging with a SPAC and going public in the US.

However, Playtech has regressed on that strategy, noting the serious macro-economic environment as the core reason for the decision.

Playtech said: “Playtech has been exploring a possible transaction regarding an agreement with Caliente which would allow Caliplay to penetrate the US market with Caliplay being acquired by a SPAC.

“Capital market conditions have deteriorated significantly since the transaction was initially contemplated and, accordingly, this transaction is no longer being pursued in the same manner.”

However, Playtech did note that while a SPAC merger was no longer considered a viable route, it was continuing to explore alternative opportunities for Caliplay.

These include building a standalone US gaming business under the Caliente brand focused on the Hispanic community in the US.

Playtech said that it was in “early stage” discussions with the SPAC and its associates regarding this alternative opportunity.

Elsewhere, the London-listed firm noted its Caliente and Snaitech divisions were continuing to drive the business.

Playtech said: “The company is trading ahead of expectations. This momentum across the business gives the board great confidence in the company’s prospects for FY 2022 and beyond, as well as the company’s ability to deliver material value to its shareholders.”

Earlier this month, TTB Partners confirmed it would not be submitting a bid to acquire Playtech in yet another twist in the long-running saga.