Playtech buys forex trading platform TradeFX for $224m

Teddy Sagi

Both companies are controlled by Teddy Sagi who wants to expand Playtech's customer base and areas of operation.

Gambling platform software company Playtech plc (LSE:PTEC) is buying a controlling stake in forex trading platform TradeFX for $224 million. Israeli billionaire Teddy Sagi holds a controlling stake in both companies.

Playtech's biggest clients include William Hill, Paddy Power, Betfair and Intergame Gala-Coral and the company also has a partnership with Ladbrokes. TradeFX is a trading platform and payment services provider.

Playtech CEO Mor Weizer told Reuters, "We intend to offer TradeFX trading platform to all of Playtech's licensees and other gaming companies, given the fact that the trading platform is complementary to gaming companies' operations."

Playtech shares rose 2.38% on Thursday. The deal is expected to produce cost and revenue synergies and help Playtech expand its customer base and enter new markets as TradeFX operates in more than 100 countries.

Playtech will buy a 91.1% stake in TradeFX, which could receive an additional €250 million in milestone payments. Through its Markets.com brand, TradeFX provides foreign exchange and CFD (contract for difference) trading platforms, including its MetaTrader 4 platform.

Canaccord Genuity acted as sole sponsor and as a joint financial adviser with UBS.

Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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