Earlier today, Gambling software developer Playtech made an announcement via the London Stock Exchange, confirming that it gave nod to an acquisition deal, worth $150 million. According to the terms of the deal, Playtech is to purchase assets in the private company Alpha (ACM Group), expanding and re-branding its Financials Division.
Following the acquisition of assets, Alpha will join Playtech’s financials unit changing its name into TradeTech Alpha. The joint venture between the two companies is triggered by their mutual goal to offer unique management strategies and industry solutions to the business to business (B2B) customers.
According to the agreement, Playtech is to purchase technology, intellectual property and certain customer stakes in Alpha. The two companies still need to meet certain legal requirements, but it was reported that the completion of the deal is set to take place at the end of September this year.
The payment process comprises 3 stages, including an initial consideration of $5m. In the coming next two years, the gambling provider Playtech is to make 2 more equal payments based on the company’s annual earnings, but all 3 money transactions totalling no more than $150 million.
Once the acquisition process is finalized, TradeTech Group will welcome a team from Alpha, creating the TradeTech Alpha brand to offer a complete package of trading solutions to B2B customers. Moreover, the addition of Alpha to the Playtech Financials unit is expected to help the division become a premier in offering B2B brokerage platforms to its clientele.
Alpha or ACM Group is a UK-based company, offering B2B financial markets solutions and marketing strategies for other business-owners. Alpha’s brokerage platform currently serves the needs of a great variety of customers. Moreover, it is worth to mention that the company witnessed a significant increase in revenues, reported to be up to £8.8 million, which was presented in a financial report for the full fiscal 2016.
Speaking of the acquisition, Ron Hoffman, the Chief Executive Officer of Playtech’s Financials Division said that this is a strategic move, which will enrich the company’s range of products and strengthen its positions on the B2B trading market. He added that Playtech remains open for further acquisitions in the near future.
Here, it is worth to mention that this is not the first time for Playtech, in which the company undertakes such a move. Only for 2016, the company spent around €240 million on acquisition deals, taking control over assets in Quickspin (gaming developer), Best Gaming Technology (software developer for self-service betting machines), ECM Systems (a provider of bingo software and hardware products) and Consolidated Financial Holdings A/S (a provider of computer related services).
As mentioned above, this is only for the last year. Besides the acquisition deal with Alpha, which is currently under way, Playtech acquired Eyecon Ltd. – a company specialized in slot games. It seems that Playtech keeps on top of the consolidation tendency, which permeated the entire gambling industry.