Playtech acquires 30.8% stake in Cali Interactive in Mexico

Playtech has successfully negotiated a revised agreement with Caliente Interactive, securing a 30.8% equity stake in Cali Interactive, the parent company of Caliplay. This deal marks a significant turnaround in their relationship, which had been strained due to disputes over unpaid fees. The agreement also allows Playtech to appoint a director to Cali Interactive's board, enhancing its influence in the joint venture. Following the announcement, Playtech's shares surged by 12.5%, reflecting investor confidence in the company's strategic direction. In addition to the equity stake, Playtech will enter into an eight-year B2B software license and services agreement with Cali Interactive. This partnership is expected to bolster Playtech's presence in the rapidly growing Mexican market, which has shown strong performance in the first half of 2024. The deal includes a cash payment of $140 million, to be received over four years, further solidifying Playtech's financial position. Mor Weizer, Playtech's CEO, emphasized the importance of this agreement, highlighting the company's proprietary technology and its potential for growth in both the Americas and Europe. Emilio Hank, chairman of Caliplay, expressed optimism about leveraging Playtech's technology to enhance customer experiences in Mexico and expand their geographical reach. This development comes amid broader industry movements, including potential acquisitions involving Playtech's Italian arm, Snaitech, by Flutter, indicating a dynamic landscape in the gambling technology sector. The collaboration between Playtech and Caliente Interactive is poised to drive significant growth in the coming years.