Playtech bolsters financial services arm with acquisition of Alpha
Firm launches TradeTech financial division ahead of H1 results after completing purchase of ACM Group
Playtech has enhanced its financial services division with the acquisition of ACM Group Limited.
ACM Group, better known as Alpha, is a UK-based financial services firm focusing on risk management and trading services.
The deal will see Playtech take on its core assets including a trading platform and a client portfolio, while Alpha’s 20-strong trading, risk, dealing and business development personnel will also join Playtech.
The supplier giant will pay an initial $5m for the assets, which could rise to $150m based on earnings over the next three years.
Following the acquisition, Playtech has rebranded its financials division to TradeTech Group ‘to reflect the full capabilities of the businesses within the division’ and align its brand in the industry.
Ron Hoffman, CEO of TradeTech Group called the purchase ‘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,” he added.
“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.”
TradeTech Group will also include Markets.com, CFH and a newly created B2C brand MarketsPro, which will be dedicated to high-net worth clients.
According to the latest filed accounts at Companies House, Alpha turnover for the year ended September 2016 was £8.8m and the group generated an underlying operating loss of £0.1m.
Alpha CEO Muhammad Al-Amin Rasoul, added: “The deal 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.”
Playtech’s H1 results are to be published tomorrow with the firm’s share price relatively unchanged this morning at 991p.