PlayUp backs out of 123gaming acquisition

An acquisition deal that would have seen Australian platform provider PlayUp acquire US gaming platform 123gaming has collapsed following the due diligence process.

PlayUp said it held concerns over the ownership of IP, commercial viability, supplier agreements, payment gateways, and profitability.

“We’d like to thank 123gaming for its honesty and openness in its dealing with us,” Daniel Simic, chief executive officer of PlayUp Ltd said. “Unfortunately, the deal could not be completed having regard to the best interests of the key stakeholders in PlayUp.”

Simic indicated that PlayUp had attempted to keep the deal alive with the submission of alternative proposals, which included offering PlayUp stock options to 123gaming shareholders, however 123gaming had declined.

“Clearly, we are very disappointed by the collapse of this deal, but we very much still believe in the concept and will be moving on to seek out other opportunities that can properly fulfil the promise of a universal gaming token and integrated platform that we can utilize in the US marketplace,” Rob Earle, CEO of 123gaming, said.

Related and similar