Playtech shares soared today as it struck a revised deal with Mexican gambling operator Caliente Interactive over its joint venture Caliplay.

The FTSE 250-listed gambling technology group said the deal will see them obtain a 30.8 per cent equity stake in Cali Interactive, the new holding company of Caliplay.

The deal will also give the London-based company power to appoint a director to the board of Cali Interactive.

The FTSE 250-listed gambling technology group said the deal will see them obtain a 30.8 per cent equity stake in Cali Interactive, the new holding company of Caliplay

Following the update, Playtech shares rose 12.5 per cent to 736p in early afternoon trading.

It will also enter into a revised B2B software licence and services agreement lasting eight years. 

The firm also said it will receive an additional $140million (£106million) paid in cash from Cali Interactive, phased over a four-year period.

Playtech added that ‘Caliplay has continued to perform strongly in the first half of 2024’.

The revised deal ends a bitter feud between the pair, who had been at loggerheads over unpaid fees.

Caliplay has also resumed paying Playtech its software and services fee with more than €150million (80 per cent of the total) already being paid.

Mor Weizer, chief executive officer of Playtech, 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.’ 

Emilio Hank, chairman of Caliplay, added: ‘We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint, as we continue in our mission to give the best gaming experiences to our customers in Mexico and beyond.’ 

In August, it was revealed that Paddy Power owner Flutter was is in talks to buy Playtech’s Italian arm, Snaitech, in a £2billion deal.

According to Sky News, Flutter is nearing an agreement, with the deal possibly being struck as early as Monday. 

One insider told the outlet that an announcement could be delayed until later this week.