The leading gaming software supplier Playtech revealed that it is to acquire the technology company Consolidated Financial Holdings A/S in order to enhance its Financial Division’s business-to-business offering.
The acquisition is expected to be finalised on November 30th 2016. With the completion of the deal, Playtech is to get a majority stake of 70% in CFH. The remaining 30% stake in the CFH is planned to be subjected to the so-called put and call options between the management teams of the two companies.
The price of the deal is estimated to $120 million. It includes an initial consideration estimated to $43.4 million for the majority 70% stake in CFH, as well as an additional consideration for the remaining 30% stake in the company.
Playtech’s Financial Unit’s boss Ron Hoffman commented on the acquisition agreement, saying that the deal would bolster the business-to-business offering of the gaming software developer. In addition, in Mr. Hoffman’s opinion, the deal would pave the way for future acquisitions and development of its business-to-customers and business-to-business platforms.
According to the company’s Financial Division’s chief, CFH had been one of the companies with the best technology capabilities to date. Mr. Hoffman said that the fact that CFH had managed to create one of the leading platforms in the STP Brokerage industry and its excellent relations with retail brokers operating on a global scale would be greatly beneficial for Playtech.
Consolidated Financial Holdings (CFH) is a wholly-held subsidiary of CFH Clearing Limited. Due to the fact that the company is subjected to regulation by the Financial Conduct Authority (FCA), the acquisition would need a regulatory approval. Playtech also revealed that the official approval of the regulatory body has already been received.
Under the terms of the acquisition, CFH will still provide Straight Through Processing (STP) services. The company’s customers will be granted with access to a deeper pool of liquidity. In addition, they will be offered faster customer service and more competitive prices. The wide range of CFD instruments available through the Financials division of Playtech will be accessible to CFH, too, after the acquisition is complete.
The customer base of CFH will also be allowed to reach the proprietary trading platform of Playtech, not to mention the fact that it will undoubtedly draw benefit from the fact that the Isle of Man-based gaming software developer is currently among the leading technology companies in the business.
The Founder of CFH, who is also a Chief Executive Officer of the company, Christian Frahm, confirmed of the acquisition deal and revealed that giving local brokerage businesses on a global scale the chance to be competitive in the markets had always been one of the key goals of CFH. According to him, the company would be given access to the best technology, resources and expertise by becoming part of Playtech.
- Author
Olivia Cole
