Playtech plc
('Playtech' or 'the Company')
Acquisition of ACM Group Limited assets to enhance Financials B2B offering
Financials Division to be named TradeTech Group
Playtech (LSE: PTEC) today announces it has agreed to acquire technology, intellectual property and certain customer assets (together 'the assets') from ACM Group Limited (known in the industry as 'Alpha' or 'ACM') as it continues to enhance its Financials Division's B2B offering.
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.
The Company also announces that its Financials Division will, from now on, 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.
About Alpha, the assets acquired and benefits of the acquisition
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. In line with Playtech's strategy to acquire bolt-on technology and additional services, 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.
Furthering the breadth of TradeTech Group's financial risk management, trading, and market making services is a central part of the strategy to grow its B2B financial offering. 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. As well as their institutional relationships, the Alpha teams will deepen TradeTech Group's offering to professional and high net worth traders allowing it to launch a dedicated high-net worth professional brand called MarketsPro.
Consideration for the acquisition comprises:
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an initial up-front payment of $5 million; |
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two staged payments based on 1 x EBITDA of 2017 and 2018; and |
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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 |
Completion of the acquisition, which is subject to the satisfaction of certain conditions, is expected to take place by 30 September 2017.
TradeTech Group
Playtech's strategy is to continue to further build its capabilities across the entire value chain in the financial trading sector. To better reflect the breadth of services offered across the Financials Division, the Division will from now on be known as TradeTech Group.
Following the acquisition, TradeTech Group will comprise:
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TradeTech Alpha, created to deliver a dedicated, industry leading, B2B solution delivering market made liquidity, professional bespoke trade execution, and risk services |
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Markets.com, a brand operated by Safecap as a provider of CFD and FX trading platforms |
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MarketsPro, a newly established dedicated B2C brand for high-net worth clients, following the acquisition of assets from Alpha Capital Markets |
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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, Chief Executive Officer of Playtech's Financials Division, TradeTech Group, said:
"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 Officer of Alpha, said:
"This is a natural fit for Alpha. 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. We could not be happier to join the family and start this next exciting chapter at TradeTech Group with the newly launched TradeTech Alpha brand."
- Ends -
For further information, contact:
Playtech plc Ron Hoffman, TradeTech Chief Executive Officer Neil Offord, TradeTech Chief Financial Officer c/o Bell Pottinger James Newman, Head of Investor Relations |
+44 (0)20 3772 2500 +44 (0)1624 645954 |
Bell Pottinger David Rydell / Jonathon Hodgkinson / Laura Jaques / Ariella Levine |
+44 (0)20 3772 2500 |
About Playtech
Playtech is a market leader in the gambling and financial trading industries. Founded in 1999 and listed on the Main Market of the London Stock Exchange (LEI code: 21380068TTB6Z9ZEU548), Playtech has c. 5,000 employees in 17 countries.
Playtech is the gambling industry's leading software and services supplier with more than 130 licensees globally, including many of the world's leading regulated online, retail and mobile operators, land-based casino groups, government sponsored entities such as lotteries, and new entrants opening operations in newly-regulated markets. Its business intelligence-driven gambling software offering includes casino, live casino, bingo, poker and sports betting.
It is the pioneer of omni-channel gambling which, through Playtech ONE, offers operators and their customers, a seamless, anytime, anywhere experience across any product, any channel (online, mobile, retail) and any device using a single account and single wallet. It provides marketing expertise, sophisticated CRM solutions and other services for operators seeking a full turnkey solution.
Playtech's Financials division operates both on a B2C and B2B basis. Its B2C focused offering is an established and growing online CFDs broker, operating the brand markets.com. Its B2B offering includes the division's proprietary trading platform, CRM and back-office systems, as well as its liquidity technology platform which provides retail brokers with multi-asset execution, prime brokerage services, liquidity and complementary risk management tools.
www.playtech.com