Playtech has just announced via the London Stock Exchange that the company is continuing its expansion into financial technology with a new acquisition. The firm is boosting its B2B financials offering with the purchase of certain assets of Alpha (also known as ACM Group).
Playtech is consolidating its finance-focused assets into a new brand called TradeTech Group. The deal with Alpha includes technology, intellectual property and certain customer assets as well as the company’s highly skilled team.
The amount that Playtech is paying for Alpha is capped at $150 million as the deal is transacted in several stages. An initial payment of $5 million will be followed up with two staged payments based on the total EBITDA in 2017 and 2018. The final payment is a contingent consideration based on 5.2 times the 2019 EBITDA minus the total of payments from 2017 and 2018.
The completion of the deal is expected to take place at the beginning of September 2017.
The CEO of Playtech’s Financials Division TradeTech Group, Ron Hoffman, commented on the deal: “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,” Hoffman elaborates.
Establishment of TradeTech Group
After the acquisition, the newly acquired assets will become part of TradeTech Group under the brand name TradeTech Alpha. The focus of TradeTech Alpha will be on delivering a bespoke risk management and trading solution to B2B customers.
TradeTech Group will also include Markets.com, CFH and a newly created B2C brand MarketsPro, which will be dedicated to high-net worth clients.
With this deal, Playtech is substantially increasing the reach of its B2B solution, incorporating market made liquidity via TradeTech Alpha and Tier 1 FX liquidity via CFH. TradeTech’s multi-asset execution is becoming a widely reaching solution that is thoroughly encompassing the market.
Alpha has been one of the fastest growing companies in the industry after Muhammad Rasoul joined the firm to lead a restructuring into a B2B services provider at the start of 2016. The UK based B2B market maker, dealer and broker has been focused on delivering bespoke risk management and trading services to institutional and professional clients.
Playtech acquired a portfolio of Alpha’s international B2B clients, the company’s 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 CEO of Alpha, Muhammad Al-Amin Rasoul, elaborated: “The deal 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,” Rasoul concluded.