Recently, there are rumours that the Billionaire Businessman Teddy Sagi has advanced with his gaming giant, Playtech on the acquisition of the online broker AVATrade. Notwithstanding, its all part of the plan of Mr. Teddy Sagi, who announced earlier its desire to enter the Forex market, whilst being active on the B2C as well as B2B side of the industry. With acquiring over 90% stakes of TradeFX limited back in April 2015, the gaming giant has already come to possess over Markets.com. A multiple regulated Forex and CFD provider on the market, that possess over a proprietary trading platform, while maintaining a high profile sponsorship deal with Arsenal F.C. Now the quest is aimed at the retail market, having laid their eyes just on the potential acquisition of the online FX and CFD broker AVATrade, Playtech now has been rumoured to be in advanced negotiation stage with the global broker IronFX.
Remarkably, it also has been reported that Mr. Teddy Sagi had recently visited the headquarters of IronFX in Cyprus. Furthermore, from the announcements that have been made publicly, the negotiation process is still in the midst of proceedings. However, the Israeli entrepreneur is likely going to pursue for a revenue share agreement between the two parties, avoiding the regular cash-offer takeover. Hence, it is expected that Mr. Markos Kashiouris will maintain it's seat as CEO of IronFX for a reckon-able time.
Revenue share agreement model
Reasoning for a likely revenue share agreement model by gaming giant, has to do with the previous acquisition deals of Playtech, with in particular the takeover of Forex Yard through its CySEC regulated investment firm Safecap. At the time of acquisition Playtech enforced a deal where it only paid a small sum in advance to Forex Yard, while in furtherance the remaining acquisition payments were rewarded through bulks of revenue split on the earnings of Forex Yard’s business activities.
Noteworthy is that for the particular deal with Forex Yard, Playtech’s investment firm Safecap provided compliance and dealing support to the acquired customers of Forex Yard. Although, Forex Yard itself continued the marketing and sales departments for their regular business activities. The motive behind this set up has to do with the fact that Forex Yard is unregulated, hence with the Safecap umbrella installed, the unregulated broker could operate accordingly without being constrained by the market regulators.
Therefore, it is expected that Mr. Teddy Sagi’s Playtech will pursue for the similar applied revenue share agreement model with IronFX. Although the question remains; is IronFX for sale? If so, will the broker be up for such a deal and set up?