Playtech (LSE: PTEC), a gaming and retail broking giant, has completed its acquisition of Consolidated Financial Holdings A/S (CFH Group), securing 70% of the technology company in its latest deal, according to a regulatory filing on the London Stock Exchange (LSE).
Earlier this month, Playtech announced that it would be purchasing CFH Group for $120 million – the move represents an about-face for the company, which up until now had been focused primarily on the retail financial trading space. Such a purchase could see Playtech move in an entirely new direction.
CFH Group provides a range of products that includes a Straight Through Processing (STP) brokerage servicing the retail brokering industry with multi-asset execution, prime brokerage services, liquidity, and complementary risk management tools. Presently, Playtech has only acquired 70% of the group, with the remaining 30% of the company pending put and call option arrangements.
Looking at CFH’s financials, the group’s revenue and adjusted EBITDA for the year ending 31 December 2015 was $18.6 million (€17.6 million) and $5.5 million (€5.2 million) respectively. The company’s annual revenue run rate was also reported at $28.2 million (€26.6 million), owed in large part to an increase in trading volumes from continuing organic growth of client acquisition and the business as a whole.