New acquisition for Playtech’s financials division

Online gambling software and games provider Playtech plc has announced that its Financials B2B Division has agreed to acquire technology, intellectual property and certain customer assets from ACM Group Limited (Alpha) in order to enhance the Division’s B2B offering.

Consideration for the acquisition comprises an initial up-front payment of $5 million; two staged payments based on 1 x EBITDA of 2017 and 2018; and contingent consideration based on 5.2 x the 2019 EBITDA, minus the initial payment and 2017 and 2018 payments, with the total consideration capped at $150 million.

As a result of the acquisition of the assets a team from Alpha will join the TradeTech Group and the brand TradeTech Alpha will be created to deliver a bespoke risk management and trading solution to B2B customers.

Playtech simultaneously announced that its Financials Division will henceforth be known as TradeTech Group to better reflect the full capabilities of the businesses within the division and align its brand recognition throughout the industry.

Alpha is a UK based B2B market maker, dealer and broker focusing on delivering bespoke risk management and trading services to institutional and professional clients.

TradeTech Group has agreed to acquire various assets from Alpha including a portfolio of international B2B clients, its proprietary trading technology, and the institutional focused Alpha Pro trading platform.

In addition, the trading, risk, dealing and business development teams of Alpha will join TradeTech Group, including approximately 20 staff based in the UK.

The acquisition of these key assets brings with it proprietary technology enabling TradeTech Group to offer an enhanced suite of products and services, which will now include market leading B2B risk management and bespoke trading solutions to the industry.

Management believes that success for brokers in the financial trading industry is driven by the ability to acquire customers directly, monitor their performance and monetise their order flows through enhanced risk management.

Following the completion of the acquisition, TradeTech Group will be positioned to offer a turnkey B2B solution to brokers covering the entire lifecycle of a trade, from front end technology to CRM and platform management, to liquidity technology, and risk management and professional trading services.

In addition to intellectual property and sophisticated proprietary technology, the Alpha dealing, risk and business development teams have a significant track record and reputation in the financial trading industry that brings a wealth of trading experience to TradeTech Group.

Completion of the acquisition, which is subject to the satisfaction of certain conditions, is expected to take place by 30 September 2017.

Following the acquisition, Playtech’s TradeTech Group will comprise:

TradeTech Alpha, created to deliver a dedicated, industry leading, B2B solution delivering market made liquidity, professional bespoke trade execution, and risk services

Markets.com, a brand operated by Safecap as a provider of CFD and FX trading platforms

MarketsPro, a newly established dedicated B2C brand for high-net worth clients, following the acquisition of assets from Alpha Capital Markets

CFH, which will continue to provide tier 1 FX liquidity services and multi-asset execution through its best of breed proprietary brokerage technology

Ron Hoffman, CEO of Playtech’s Financials Division, TradeTech Group, said in a statement Wednesday:

“This is a significant step in the evolution of TradeTech. The financial trading industry is driven by the core capabilities of platform technology, customer acquisition and retention, CRM management, and financial trading and risk management expertise.

“The acquisition of Alpha’s high-quality technology and teams of industry experts will significantly deepen our expertise in trading and risk management, allowing TradeTech Group to offer a full turnkey solution to B2B clients across the industry.”

Muhammad Al-Amin Rasoul, chief executive of Alpha, added:

“The strength of TradeTech Group’s management team and asset base will provide us with a platform to grow our offering with TradeTech Alpha. Not only does TradeTech offer everything that you need for a complete B2B solution for brokers, but you can get that solution from the most financially secure company in the industry.”

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