Playtech has today announced its acquisition of CFH Group, expanding its presence in the B2B Forex market. What are the conditions of the Playtech CFH Group acquisition? How will both companies benefit from the acquisition?
14th November, AtoZForex – Playtech, a global software and services provider in gambling and financial trading industries, has reported that it is acquiring Consolidated Financial Holding A/S (CFH), a technology firm. The acquisition is aimed at strengthening the position of Playtech in its Financials division. It will be finalized by the 30th of November.
CFH is one of the biggest B2B providers for technology and clearing in the industry. It owns such products as a Straight Through Processing (STP) brokerage that provides retail brokers with prime brokerage services, multi-asset execution, liquidity and complementary risk management tools. The company has more than 400 clients and partners spread across 80 countries. Those customers and partners provide services to retail customers worldwide. At the moment, CFH can offer liquidity on around 110 instruments.
CFH Clearing Limited is a wholly owned subsidiary of CFH and is supervised by the UK regulator, Financial Conduct Authority (FCA). Playtech approves that the FCA has confirmed the deal.
Conditions and benefits of Playtech CFH Group acquisition
The acquisition will be completed by the 30th of November, 2016, with the Playtech Group paying $120 million for CFH. Upon the finalization, Playtech will obtain 70 percent of CFH, whilst 30 percent will be put and call options between management team of CFH and Playtech. The options can be exercised in 2019. The management of CFH will remain in the company. According to Ron Hoffman, Playtech's Financials division CEO:
"The acquisition of CFH will strengthen Playtech's offering in the B2B market of financial trading and provide the foundation for future acquisitions as well as to become one of the only businesses to offer proprietary, dedicated B2C and B2B platforms to clients."
Furthermore, CFH will be willing to offer its clients better trading terms and more appealing margins as well as access a deeper pool of liquidity. CFH will get an access to a broad variety of CFD instruments of the Playtech’s Financial division. Additionally, CFH’s clients will be able to access proprietary trading platform provided by Playtech and a CRM technology.
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