United Kingdom gambling company Playtech watched shares soar 14% after a court battle with Mexican operator Cali Interactive came to a close.
The legal battle between both betting heavyweights had rumbled on for more than a year through the courts of England, the United States, and Mexico. It centered around Caliplay, a joint investment in which Cali Interactive controlled the market in Mexico, and Playtech provided a lease for its proprietary software.
The court battle has now come to a close, finalizing a year of litigation, arguments between both parties and a surge in the Playtech share price on Monday.
British and Mexican gambling firms agree on a million-dollar end to battle
Mor Weizer, Playtech’s chief executive officer, said, “The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology.
‘With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well-placed to deliver strong growth in our B2B business in the coming years.”
The agreement between both parties involves an eight-year business-to-business (B2B) contract for Playtech’s ongoing software and technology support. Cali Interactive paid a total of $166m in an attempt to settle the arrears between the pair. This would equate to eighty percent of the outstanding fees owed to Playtech that was at the core of the divide between the two.
This has resulted in the Playtech share price surge and an end to the hostilities. Emilio Hank, Chairman of Caliplay, said: “We are delighted to finalize this renewed agreement, which shows the inherent strength of the strategic relationship between Caliplay and Playtech. We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint as we continue our mission to provide the best gaming experiences to our customers in Mexico and beyond.
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