Playtech renames financials division, acquires ACM Group, aka Alpha

Maria Nikolova

Due to the acquisition of Alpha, the brand TradeTech Alpha will be created within Playtech’s financials division to deliver a bespoke risk management and trading solution to B2B customers.

Playtech PLC (LON:PTEC) has just made a move towards expanding and diversifying its financials unit. In a filing with the London Stock Exchange today, Playtech said it agreed to acquire technology, intellectual property and certain customer assets from ACM Group Limited, also known as Alpha. ACM Group is a UK-based B2B market maker, dealer and broker focusing on delivering bespoke risk management and trading services to institutional and professional clients.

Alpha will join Playtech’s financials division, which is changing its name to TradeTech Group.

Playtech said that the 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.

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

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. Once the acquisition is completed, 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.

Following the acquisition, TradeTech Group will include:

  • 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.

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