Supplier News
UK – Playtech buying IP from broker ACM
By Phil - 24 August 2017
Playtech is buying intellectual property and technology from UK-based dealer and broker ACM Group Limited for US$150mln.
Playtech said the deal would improve the B2B offering of its financials division, which will be rebranded as TradeTech Group.
As part of the deal, a team from ACM, known as Alpha, will join the TradeTech Group and the brand TradeTech Alpha will be created to deliver a bespoke risk management and trading solution.
TradeTech will purchase assets from Alpha including a portfolio of international B2B clients, its trading technology, and the Alpha Pro trading platform.
Playtech will make an initial upfront payment of US$5mln, plus two payments based on the company’s EBITDA generated in 2017 and 2018.
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, added: “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.”
Analysts at Liberum Capital said: “This highlights the increasing strategy to become a B2B software supplier to the financial trading sector as well as to gaming. To put in context the financial sector today only accounts for around 10% of profits and on a sum of the parts basis is valued close to zero.”
