Playtech Confirms It’s in Talks over Potential Sale of TradeTechAugust 27, 2020
Confirming rumors that have been swirling for hours, gambling software company Playtech (LSE: PTEC) has just confirmed in a statement that it is exploring a potential sale of trading technology division TradeTech.
The FTSE 250 group said in a regulatory update this afternoon it is engaged in talks with ‘a number of parties’ that are interested to acquire TradeTech’s operations, which provides spread-betting services to businesses and consumers.
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These discussions are at an early stage and may or may not result in a transaction, the statement said but offered no further details, only saying a further announcement will be made in due course.
Playtech’s management is also “evaluating all options” for the TradeTech business, the group said, which could be understood it was looking at a sale, or partial sale.
Israeli news agency Calcalist reported earlier today that Playtech has hired UBS Investment Bank for selling TradeTech, looking for an initial bid between $200 million to $250 million.
Playtech’s trading technology division had a strong start this year as increased market volatility, led by Covid-19 chaos, boosted revenue. Before that, however, Playtech trimmed its profit guidance due to highly challenging trading conditions and a regulatory crackdown on risky trading products.
Playtech’s TradeTech division includes TradeTech Alpha, created to deliver a B2B solution, Markets.com, a provider of CFD and FX trading to retail investors, and MarketsX, a dedicated B2C brand for high-net worth clients. TradeTech Group also includes CFH, which it acquired in 2016.
Earlier this year, Muhammad Rasoul has parted ways with ACM Group Limited (known in the industry as ‘Alpha’), ending a four-year tenure with the company that offers bespoke risk management and trading solutions to B2B customers.
Rasoul has also left his position as a director at TradeTech Group, a role he held with Playtech financials division since October 2017. In the same year, Playtech agreed a $150 million deal to acquire the assets of privately-owned brokerage firm ACM Group.
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