Playtech has made an agreement with Ladbrokes plc regarding the early determination of £75 million owed for marketing services for PTTS and the Ladbrokes Group from March 2013.
The agreement has been made in preparation for the possible merger of the Ladbrokes Group and the Coral Group and is pending completion of the merger.
Upon completion of the merger, Playtech stands to receive £75 million, of which £40 million will be paid in Ladbrokes shares and the remaining £35 million is to be paid in cash.
On Friday, Mor Weizer, CEO of Playtech said, "Both Ladbrokes and Coral are key licensees of the [Playtech] Group and we have been delighted to assist Ladbrokes in the turnaround of its online operations. We look forward to continuing our strong long term relationships with both groups and expect to play a key role in their future success, both before and after their proposed merger."
As for the merger, it seems that it will move forward.
Ladbrokes chairman Peter Erskine said Friday: “This is a major strategic step for Ladbrokes which firmly accelerates our strategy to improve the customers’ experience and build recreational scale.
“Ladbrokes and Coral are two highly complementary businesses, with rich heritage and brand presence across the UK and internationally.
“Together, we will create a leading betting and gaming business combining strong brands with an attractive multi-channel offering and an extensive national and international coverage."