Playtech’s financial trading unit TradeTech will undergo a rebranding in late January, following news in recent months that the online gambling tech giant was in early discussions to sell. the business.
TradeTech will change its name to Finalto later this month, saying the new name would better reflect what it does and how it does it, as finance is at the center of its operations and it always aims higher.
The formal launch of Playtech’s new financial unit is scheduled for the end of the month. Kate Ryan, TradeTech’s chief marketing officer, told Finance Magnates financial trading news outlet that the upcoming rebrand signals the beginning of an exciting new phase for the company and its clients and that they are very excited to have found a name that will help them achieve their goal of becoming a major player in the “global markets and technology.”
Playtech, a company whose core business includes providing B2B and B2C services to the global online gambling industry, formed its financial trading division in 2017 following the acquisition of CFH Group in a $ 120 million deal and FX and CFD market maker Alpha Capital Markets for $ 150 million. TradeTech also includes Playtech’s retail currency brokerage unit, Markets.com.
Rebranding before potential sale
After a weak performance in 2019, TradeTech saw its fortune shine in the first half of 2020 amid increased market volatility and trading volumes caused by the coronavirus pandemic. Playtech said in its report for the first six months of 2020 that TradeTech’s revenue increased more than 123% during the reported period to € 87.3 million, with underlying earnings increasing from € 8.2 million in 2019 to € 52.8 million during the first half of 2020.
Its poor performance in 2019 forced Playtech to launch a review of its financial unit and its future. Despite its much-improved fortunes in 2020, reports emerged last summer that the house of online gambling technology was considering selling TradeTech.
Israeli media reported in September that local Bank Leumi, Menora and Phoenix insurance companies, Fortissimo Capital investment fund, and Israeli businessman Zvika Barenboim were in talks to submit a joint bid for TradeTech. According to separate reports, Playtech was requesting an initial offering of between $ 200 million and $ 250 million for its financial trading business.
Playtech itself confirmed at one point that it was holding discussions with various stakeholders to potentially sell its financial unit, but noted that they were at a very early stage and that “there can be no certainty that no transaction will be made or if acceptable terms will be agreed. “
The CEO of the company, Mor Weizer, commented that he himself did not feel “No pressure to sell the business” given their recent performance and that they will definitely keep TradeTech if they don’t get the right price of interested buyers.