Gambling and trading platform developer Playtech (PTEC) has agreed to acquire brokerage services firm Consolidated Financial Holdings (CFH) for up to $120m.
Investors are buying in on the deal because it will add bolster the developer’s business-to-buisness (B2B) offering. That's put 3.6% on to the share price at 914p.
Playtech is initially buying a controlling 70% stake in CFH although the remaining 30% is subject to put and call options which can be exercised in 2019.
CFH makes most of its revenue from processing trading volumes through its brokerage platform. In the year to 31 December 2015, the company achieved $19.2m (€17.6m) in revenue. In future it will now be able to provide its customers with improved trading terms and have access to Playtech’s proprietary trading platform.
Playtech says the acquisition includes an initial consideration of $43.4m (€39.8m) on a cash and debt-free basis.
The deal follows news on 25 August that Playtech will hand out a special dividend to investors.
