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The news comes a year after the gambling software form ditched its attempt to buy Plus500, one of the top CFD brokers in the UK.
Playtech – the Israeli business owned by billionaire Teddy Sagi – has agreed to acquire Consolidated Financial Holdings (CFH), a technology company with products including a leading Straight Through Processing (STP) brokerage.
CFH provides retail brokers with multi-asset execution, prime brokerage services, liquidity and complementary risk management tools. Playtech will acquire 70 per cent of CFH on completion of the deal, scheduled to complete on 30 November, 2016.
The remaining 30 per cent will be subject to put and call options between Playtech and CFH’s management team, who are remaining with the business, and which can be exercised in 2019.
The acquisition will enhance Playtech’s position as it continues to build a B2B offering within its Financials division.
Deal comes a year after Playtech pulled out of deal for top forex broker
Just a year ago, Playtech pulled out of a deal to acquire Plus 500; one of the largest CFD brokers in the market. The Israeli software giant ditched plans for a £460 million takeover of Plus 500 – widely regarded as one of the best CFD brokers – after problems in obtaining regulatory clearance for the deal.
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Under UK rules, the Financial Conduct Authority (FCA) had to give clearance for Playtech to take a stake greater than 10 per cent in Plus500, which is regulated. However, the ‘changes’ demanded by the FCA would have taken Playtech too long to implement, and they pulled out of the deal.
Playtech have confirmed that they have obtained regulatory approval for their acquisition of CFH, as the company’s wholly owned subsidiary CFH Clearing Ltd is regulated by the FCA.
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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously acting as multi asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2000.
It appears that early May reports by Finance Magnates about Playtech buying AvaTrade have had substantial merit. The deal is now closed, valuing the forex and CFDs brokerage at $105 million. The news comes after the media reports about the negotiations were dismissed in May.
Teddy Sagi is continuing his quiet venture deeper into the retail forex market and steering gaming company Playtech into a new direction. Mr. Sagi is Playtech’s biggest shareholder controlling about one third of the company’s share capital. So far his conquest into the retail foreign exchange market appears to be continuing without many hurdles.
This may yet change as a shareholders’ vote on Playtech’s purchase of Plus500 is looming on the 16th of July.
AvaTrade’s EBITDA for 2014 totaled $24.6 million
The acquisition deal was speculated at around $100 million back in May, with some estimating the revenues of AvaTrade at about $20 million for 2014. It appears that these estimations have been mostly correct with the purchase price standing at $105 million.
According to data from the Finance Magnates Quarterly report, AvaTrade reported its trading volumes at close to $40 billion a month, or on average $1.9 billion daily in the first quarter of 2015. The deal would build a solid base for the forex business of Playtech especially after having acquired TradeFX Group earlier this year.
Playtech is using its TradeFX Limited subsidiary to finalize the deal, which as it turns out is an option exercise to purchase the company. The option was purchased before Playtech acquired TradeFX.
The acquisition is conditional on the approval from Playtech’s shareholders and financial regulators.
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Playtech also announced that it has secured a €200 million credit line from Barclays and Royal Bank of Scotland. The funds are going to be used to realize the company’s recent acquisitions.
Commenting on the announcement, the CEO of Playtech, Mor Weizer, said, “The acquisition of Ava Group is another important milestone in Playtech’s strategy to expand and enhance its overall technology offering through multiple vertical markets.”
Playtech continues to look for acquisitions, considering a multiple of about 6x adjusted 2014 EBITDA
“Since the recent earnings-enhancing acquisition of TradeFX and the creation of our financials division we have sought further opportunities to broaden our reach into this vertical. The Ava Group is a well recognised and established online CFD broker with multiple regulatory licences and a strong customer base with insignificant geographical overlap with the TradeFX Group,” he added.
Playtech has shared in its official announcement that it intends to continue looking for attractive acquisition targets in the area and highlighted that it considers an attractive multiple of approximately 6x adjusted 2014 EBITDA. AvaTrade’s EBITDA for 2014 totaled $24.6 million.
Probably the most lucrative part of the acquisition is AvaTrade’s Japanese Financial Services Agency’s license, which is opening doors for Playtech to venture into the biggest retail foreign exchange markets in the world by volume. The average number of active AvaTrade customers for the first five months of 2015 totaled 13,400.
Акционеры брокера получать 400п за акцию наличными.
Очень интересное развитие событий около розничного форекс-брокера Plus500 Ltd (LON:PLUS), который в последнее время переходит через трудный период из-за медленной обработки клиентских документов и замораживания клиентских счетов. Playtech PLC (LON:PTEC) покупает брокера за сумму в £459.6 млн (36.99 млрд рублей).
Советы директоров достигли согласие о сделке, которая будет всецело наличными. Акционеры брокера получать 400п за акцию. Сделка должна завершится до конца сентября 2015 года, но ее еще ожидают решения регуляторов.
Мор Вайзер, исполнительный директор Playtech, прокомментировал:
«Поглощение Plus500 поможет Playtech расширить свой портфель предложений, особенно после приобретения TradeFX. Эта сделка станет приносить доходы моментально, так что комбинация двух бизнесов довольно солидная.»
Гал Хабер, исполнительный директор Plus500, отметил:
«Мы очень рады, что сумели развить бизнес Plus500 за такое короткое время и превратить его в важного игрока на CFD-рынке. После нашего первичного публичного предложения в июле 2013 года, мы верим что теперь настал момент комбинировать бизнес с Playtech, которая нам предоставить дополнительную инфраструктуру и опыт, что поможет нашим возможностям в сфере торговых продуктов, технологий и маркетинга.»