FTSE-listed industry platform and technology provider Playtech Plc continues its expansion within the financial services sector, moving to acquire all assets of Alpha UK, a B2B risk-management and trading systems’ supplier.
Issuing a market update, Playtech informs that it has acquired Alpha’s international client portfolio, the firm’s proprietary technologies, its B2B platform, development and trading teams plus all intellectual properties.
Playtech will acquire Alpha assets placing an initial upfront payment of $5 million, with the company being further rewarded with EBITDA payments for 2017, 2018 and 2019, Playtech has capped the deal’s total consideration at $150 million.
Further to its update, Playtech informs that it has rebranded its Financial Services division to the ‘TradeTech Group’ in order to ‘reflect the full capabilities of the businesses within the division’.
Moving forward, Playtech’s TradeTech division will compromise of the following assets:
- 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, commented on the corporate update “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.”