Playtech completes acquisition of 70% of CFH Group

Playtech PLC (LON:PTEC) issued a brief note stating that it has now completed the acquisition of 70% of institutional FX firm CFH Group. The planned acquisition was initially disclosed on November 14.

In a deal in which Playtech will eventually pay up to $120 million for all of CFH Group, Playtech paid an initial consideration of $43.4 million for 70% of CFH’s fully diluted share capital, representing a multiple of approximately 7x the current EBITDA run rate for the company.

Playtech will pay additional consideration for the remaining 30% of CFH which will be subject to a put and call option exercisable in 2019 at a multiple of 6.0x CFH’s adjusted EBITDA for the year ending 31 December 2018. The 2019 payment is capped at $76.6 million, which would bring the total payment to $120 million.

The Playtech news release read as follows:

30 November 2016

Playtech plc

(“Playtech” or the “Playtech Group”)

Playtech completes the acquisition of CFH

Playtech (LSE: PTEC) announces that is has completed the acquisition of 70% of Consolidated Financial Holdings A/S, a technology company with products including a leading Straight Through Processing brokerage which provides retail brokers with multi-asset execution, prime brokerage services, liquidity and complementary risk management tools.

Playtech expects to acquire the remaining 30% in 2019 pursuant to put and call option arrangements.

Read Also: