Playtech, the i-gaming technology giant, has boosted its financial services offering with the acquisition of technology, intellectual property and assets from ACM Group for an initial US$5m – although that cost could rise significantly, dependent on performance.
ACM is a UK-based B2B market maker, dealer and broker focusing on delivering bespoke risk management and trading services to institutional and professional clients.
Playtech’s financials division will now be known as TradeTech Group to better reflect the full capabilities of the businesses.
The acquisition will see teams from ACM - known widely as Alpha - join the TradeTech Group and the TradeTech Alpha brand created to offer risk management and trading solutions to B2B customers.
The acquisition comprises an initial up-front payment of $5m. There will be further, staged, performance-related payments based on 2017 and 2018 earnings (equivalent to EBITDA totals in each year) and a further potential payment of 5.2-times the 2019 EBITDA - minus the initial payment and the 2017 and 2018 payments.
Total consideration is capped at $150m. The deal is expected to close no later than September 30.
