On Playtech important to consider who owns the majority of Caliente (some time on wikipedia will throw up some interesting background) and also look at the performance of the B2B business ex the special fee they have agreed to give up
Yes, this is a good point. Although a 30% stake in Caliente Interactive could be worth a lot. It's unclear to me how PTEC will monetize this stake. A minority stake into a company run by a family with ties to the Mexican cartel doesn't sound like the easiest thing to get rid of...
Pro-Forma for the transaction I get around 600m EUR EV. Not entirely sure what EBITDA will look like with the new Caliente contract, but management guided towards 30-40m EUR less in 2025 vs 2024. If you take Pro-Forma EBITDA to be 150m EUR, a 40m reduction on 2023 EBITDA + a little bit of growth you land with a 4x multiple. Definitely cheap, but not that much cheaper than where PTEC traded pre deal.
However if the Caliente stake can be monetized at anything close to the rumored SPAC price or on any reasonable multiple of sales (did 700m EUR in 2023), the RemainCo is a steal. Keen to hear thoughts from anyone else who has done work here.
On Playtech important to consider who owns the majority of Caliente (some time on wikipedia will throw up some interesting background) and also look at the performance of the B2B business ex the special fee they have agreed to give up
Yes, this is a good point. Although a 30% stake in Caliente Interactive could be worth a lot. It's unclear to me how PTEC will monetize this stake. A minority stake into a company run by a family with ties to the Mexican cartel doesn't sound like the easiest thing to get rid of...
Pro-Forma for the transaction I get around 600m EUR EV. Not entirely sure what EBITDA will look like with the new Caliente contract, but management guided towards 30-40m EUR less in 2025 vs 2024. If you take Pro-Forma EBITDA to be 150m EUR, a 40m reduction on 2023 EBITDA + a little bit of growth you land with a 4x multiple. Definitely cheap, but not that much cheaper than where PTEC traded pre deal.
However if the Caliente stake can be monetized at anything close to the rumored SPAC price or on any reasonable multiple of sales (did 700m EUR in 2023), the RemainCo is a steal. Keen to hear thoughts from anyone else who has done work here.