Playtech in talks to sell TradeTech

The gaming solutions giant is looking to offload its financial division 

UK.- The gaming solutions giant Playtech has said it is in talks with several parties with an eye to sell its financial division, TradeTech.

The Isle of Man-headquartered group has hired UBS Investment Bank to oversee a potential sale, and is looking at a price tag of between US$200million and US$250million.

According to Israeli new agency Calcalist, the investment fund Fortissimo, Israeli entrepreneur Zvika Barenboim and several institutional bodies have formed a group to make a bid for the division.

Playtech has confirmed it was in talks about a potential sale, but that they were at an early stage with no certainty of an agreement being reached. 

It said that TradeTech meanwhile continues to make “a valuable contribution” to the group’s business, noting its “exceptional performance” in the first half of the year.

TradeTech was formed after Playtech’s $120million acquisition of CFH Group, a company that offered liquidity services to FX brokers, in late 2016. That was followed by the $150million acquisition of London-based FX marker maker Alpha Capital Markets. 

Playtech combined the two acquisitions with its own Retail FX brokerage business Markets.com.

Playtech made a decision last year to refocus on its core gaming business, but the six months to June 30 saw TradeTech make a notable contribution to the gaming group’s financials. 

The company said market volatility during the pandemic and a growing increase in trading markets from retail investors had boosted the division’s activity during the period.