Playtech has revealed that its TradeFX subsidiary has agreed a deal to acquire the entire issued share capital of online trading platform Ava Trade.
As reported by iGaming Business in May, Playtech was said to have struck a deal to acquire Ava Trade, exercising an option held prior to the purchase of TradeFX earlier in the month.
Playtech’s TradeFX arm has now entered into a share acquisition agreement to acquire Ava Trade for $105 million (€94.6 million), subject to a post-completion working capital calculation on a cash-free and debt-free basis.
In support of the acquisition, Playtech has also agreed a €200 million unsecured revolving credit facility with Barclays Bank and the Royal Bank of Scotland.
Together with existing cash resources, this additional facility will help finance recent acquisition as well as support further growth initiatives.
Mor Weizer, chief executive officer of Playtech, said: “The acquisition of the Ava Group is another important milestone in Playtech’s strategy to expand and enhance its overall technology offering through multiple vertical markets.
“Since the recent earnings-enhancing acquisition of TradeFX and the creation of our financials division we have sought further opportunities to broaden our reach into this vertical.
“The Ava Group is a well recognised and established online CFD broker with multiple regulatory licences and a strong customer base with insignificant geographical overlap with the TradeFX Group.
“We are very excited about the opportunities for the group arising from the combination of the Trade FX Group and the Ava Group which we are confident will deliver long-term value for shareholders.”
source : www.igamingbusiness.com
