Over the past couple of years, one name that has been consistently in the news when it comes to forex broker acquisition has been Playtech. Playtech PLC is the brainchild of Teddy Sagi who originally got started in the online gaming business and is involved with some of the biggest names in gaming including Ladbrokes and Bet365. Playtech currently holds a market cap that is in excess of $900 Million.
Playtech on a Shopping Spree
Playtech has now set its sites on Forex Brokers and recently has been on a spree. The company started with an acquisition attempt at AVA Trade for $105 Million. The company was most noted for its acquisition attempt of Plus500 for over $700 Million. Teddy Sagi was forced to give up on the acquisition because they could not get the approval of the FCA the UK regulator. The gaming industry doesn’t have the best reputation and may have been part of the reason for the denial by FCA.
Acquisition of a Prime of Prime Broker
The company was successful in its recent acquisition of CFH Group for $120 Million. This acquisition is different in that CFH is a Prime of Prime and deals primarily with other retail brokers.
Adding Markets.com to the List
The company also acquired a major retail broker in Markets.com also known as TradeFX. This deal was valued for over $400 Million and was approved by a less stringent in CySEC. This allowed Playtech to offer out its trading platform to all of its marketing brands.
Gaming and Technology Leading the Way
It is fascinating and telling that the dominant player in retail forex isn’t a bank or a fund but a gaming and technology company. What is it that a company like this see in the valuations of these companies? Will Playtech continue to seek out more acquisitions? Especially in such an uncertain regulatory environment.