Playtech PLC (LON:PTEC) has agreed to acquire technology and intellectual property assets from UK-based B2B market maker, dealer and broker ACM Group Limited for up to US$150mln.
The FTSE 250-listed online gaming software supplier said the deal will enhance the B2B offering of its financials division, which will now be known as TradeTech Group to better reflect the full capabilities of the businesses.
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As a result of the acquisition of the assets a team from ACM - known as Alpha - will join the TradeTech Group and the brand TradeTech Alpha will be created to deliver a bespoke risk management and trading solution.
TradeTech Group has agreed to acquire various assets from Alpha including a portfolio of international B2B clients, its proprietary trading technology, and the institutional focused Alpha Pro trading platform.
As part of the deal, Playtech will make an initial upfront payment of US$5mln, plus two staged payments based on EBITDA of 2017 and 2018 and a contingent, giving a total consideration capped at US$150mln, the company said in a statement.
Ron Hoffman, the chief executive officer of Playtech's financials division, said: "This is a significant step in the evolution of TradeTech.”
Shares higher, Liberum positive
In late afternoon trading, Playtech shares were 0.8%, or 8.0p higher at 997.5p.
In a note to clients, analysts at Liberum Capital reiterated a ‘buy’ rating and 1,020p price target on Playtech shares.
They commented: “This highlights the increasing strategy to become a B2B software supplier to the financial trading sector as well as to gaming.
“To put in context the financial sector today only accounts for around 10% of profits and on a sum of the parts basis is valued close to zero.”
Playtech will post its first half results tomorrow.
-- Adds share price, broker comment --