TIDMPTEC
RNS Number : 7462O
Playtech PLC
23 August 2017
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:
-- 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 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:
-- 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
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 +44 (0)20 3772 2500
Chief Financial Officer
c/o Bell Pottinger
James Newman, Head of
Investor Relations +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
This information is provided by RNS
The company news service from the London Stock Exchange
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