Confirming rumors that have been swirling for hours, gambling software company Playtech (LSE: PTEC) has just confirmed in a statement that it is exploring a potential sale of trading technology division TradeTech.
The FTSE 250 group said in a regulatory update this afternoon it is engaged in talks with ‘a number of parties’ that are interested to acquire TradeTech’s operations, which provides spread-betting services to businesses and consumers.
These discussions are at an early stage and may or may not result in a transaction, the statement said but offered no further details, only saying a further announcement will be made in due course.
Playtech’s management is also “evaluating all options” for the TradeTech business, the group said, which could be understood it was looking at a sale, or partial sale.
Israeli news agency Calcalist reported earlier today that Playtech has hired UBS Investment Bank for selling TradeTech, looking for an initial bid between $200 million to $250 million.
Playtech’s trading technology division had a strong start this year as increased market volatility, led by Covid-19 chaos, boosted revenue. Before that, however, Playtech trimmed its profit guidance due to highly challenging trading conditions and a regulatory crackdown on risky trading products.
Playtech’s TradeTech division includes TradeTech Alpha, created to deliver a B2B solution, Markets.com, a provider of CFD and FX trading to retail investors, and MarketsX, a dedicated B2C brand for high-net worth clients. TradeTech Group also includes CFH, which it acquired in 2016.