Playtech plc has announced today that it will acquire part of financial trading business ACM Group. The gambling technology provider looks to reinforce its financial division by purchasing technology, intellectual property and customer assets from ACM, also known as Alpha, with a total value of $150m.
Under the terms of the new deal, which is set to complete by the end of September this year, Playtech will take control of the UK-based B2B market maker, dealer and broker that focuses on bespoke risk management and trading services.
As part of the acquisition agreement, the company will also assume ownership over ACM’s clients, including institutions and professionals. Additionally, team members from Alpha will also join its new owner’s Financials division.
Playtech said in a filing with the London Stock Exchange today that the deal terms included an initial up-front payment of $5m; two staged payments based on 1 x EBITDA of both 2017 and 2018; contingent consideration based on 5.2 x EBITDA in 2019, minus the initial payment and 2017 and 2018 payments.
Moreover, Playtech’s financial unit will now be renamed as TradeTech Group. This re-branding falls in the line with the company’s strategy to boost its capabilities of the business within the division.
In a company filing, Ron Hoffman, Chief Executive of TradeTech, called this move a "significant step" in the division's development.
"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," said Hoffman.
Muhammad Al-Amin Rasoul, Chief Executive 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.”