Playtech Buys ACM For $150 Million

Publish: 08.10.2017

The Isle of Man-based online gaming software supplier Playtech completed the purchase of Australian ACM Group Limited for a sum of $150 million.

Playtech announced on Monday that the finalisation of this deal would open the way for the establishing of the company’s new TradeTech Alpha brand.

In a short statement released following the completion of the acquisition, Playtech said the new Alpha brand would deliver a completely fresh, custom-made risk management and trading solution to business-to-business customers.

Signaling New Expansion

The latest move marks the beginning of Playtech expansion into a new segment, where Alpha will have the task bringing in new customers in the form of FX brokers and private operators.

The initial payment of $5 million will be followed by two payments based on 2017 and 2018 EBITDA. The earn-out will equal 5.2 x 2019 EBITDA, minus the initial payment and the two 2017 and 2018 remittances. As mentioned, the total consideration stands at $150 million.

According to the available information, the current Alpha management will remain at the new company. This means Alpha’s Chief Executive Officer Muhammad Rasoul will continue his work at the company he steered from its humble beginnings.

The latest year-to-date figures show Alpha recorded a staggering revenue increase of 266% to $29.08 million, mainly due to the acquisition of new institutional clients.

Excellent Year So Far

Playtech can be more than satisfied with the results made in 2017. The semi-annual report revealed the company generated $105.2 million in revenue during the first six months, 30% more when compared to the same period of 2016.

Net profits went up by 21% to $105.22 million.

However, the most significant highlight for Playtech in recent months was the acquisition of the Danish financial trading systems developer Consolidated Financial Holdings. The company was bought in November 2016 for a sum of $120 million.