Online gaming and financial trading systems provider Playtech PLC (LON:PTEC) has announced that it has closed its previously announced acquisition of market maker ACM Group Limited (Alpha). The deal was completed as a sale of assets from ACM.
In August Playtech revealed its agreement to acquire the fast-growing privately held Alpha, in a structured transaction with:
- an initial up-front payment of $5 million;
- two staged payments based on 1 x EBITDA of 2017 and 2018; and
- contingent consideration based on 5.2 x 2019 EBITDA, minus the initial payment and 2017 and 2018 payments, with the total consideration capped at $150 million.
The acquisition of Alpha marks an expansion of Playtech’s move into the institutional FX space, and services to FX brokers and white label operators. It comes less than a year after Playtech entered the institutional FX sector, via its $120 million acquisition of CFH Group in late 2016. We believe that Playtech was very interested in bringing on board the Alpha management team, led by CEO Muhammad Rasoul, who had grown Alpha from the ground up. Mr. Rasoul and several of his key colleagues formed Alpha with investor backing after having worked together in institutional FX at Gain Capital Holdings Inc (NYSE:GCAP),
The full press release issued on the matter by Playtech reads as follows:
02 October 2017
Playtech completes acquisition of ACM assets
Playtech (LSE: PTEC) today announces that it has completed the acquisition of technology, intellectual property and certain customer assets (together ‘the assets’) from ACM Group Limited (known in the industry as ‘Alpha’ or ‘ACM’).
As a result of the acquisition of the assets a team from Alpha joined the TradeTech Group creating the brand TradeTech Alpha. TradeTech Alpha will deliver a bespoke risk management and trading solution to B2B customers.