Playtech bolsters financials division with £96m acquisition

Playtech is to acquire financial technology company Consolidated Financial Holdings (CFH) for up to $120m (£96.1m) as the supplier continues to strengthen its financials division.

The deal will see the egaming provider acquire an initial 70% stake in CFH, with the remaining 30% subject to put and call options between Playtech and CFH’s management team.

The London-listed supplier is set to pay an initial consideration of $43.4m (£34.8m) on a cash free/debt free basis, with the deal expected to take place on 30 November 2016.

CFH’s products include a Straight Through Processing (STP) brokerage offered to more than 400 customers and partners worldwide, while its CFH Clearing subsidiary is regulated by the Financial Conduct Authority (FCA).

Ron Hoffman, chief executive officer of Playtech’s financials division, said he was confident CFH would prove a useful addition to its portfolio as it looks to expand its financials B2B offering.

“The acquisition of CFH will strengthen Playtech’s offering in the B2B market of financial trading and provide the foundation for future acquisitions as well as to become one of the only businesses to offer proprietary, dedicated B2C and B2B platforms to clients,” he said.

“We are delighted to welcome CFH and its management team into Playtech’s Financials division and believe that the CFH brand will continue to flourish within the Playtech family,” Hoffman added.

CFH’s revenue and adjusted EBITDA for the year ended 31 December 2015 was $19.2m (£15.4m) and $5.7m (£4.6m) respectively.

Last year Playtech unsuccessfully attempted to acquire financial trading firms Plus500 and AvaTrade after failing to gain approval from the Bank of Ireland and the UK’s FCA.

The supplier’s financials division is currently run through its Markets Limited (formerly TradeFX) subsidiary after acquiring the CFDs broker and trading platform provider in 2015.