The gambling technology group Playtech, lead by Israeli billionaire Teddy Sagi, has signed a $150 million (£117 million) deal to expand its City trading operation to expand financial division.

The FTSE 250 company has agreed to acquire intellectual property, trading technology, and customer assets from ACM Group known in the industry as ‘Alpha’,  for an initial payment of $5 million.

Under the deal, about 20 UK-based ACM employees, currently working as part of its trading, risk, dealing and business development teams, will join Playtech’s financial division, which will be renamed Tradetech Group. The brad TradeTech Alpha will also be created to deliver bespoke risk management and trading solutions to B2B customers.

With future payments dependent on earnings over the coming two years, the overall cost of the deal will be capped at $150 million, the company said.

The acquisition is expected to be completed by the end of next month.

Ron Hoffman, chief executive of Playtech’s ‘TradeTech Group’ financials division, said: “This is a significant step in the evolution of TradeTech; the financial trading industry is driven by the core capabilities of platform technology, customer acquisition and retention, CRM management, and financial trading and risk management expertise.

“The acquisition of Alpha’s high-quality technology and teams of industry experts will significantly deepen our expertise in trading and risk management, allowing TradeTech Group to offer a full turnkey solution to B2B clients across the industry.”

Muhammad Al-Amin Rasoul, chief executive of Alpha, added: “This is a natural fit for Alpha; the strength of TradeTech Group’s management team and asset base will provide us with a platform to grow our offering with TradeTech Alpha.

“Not only does TradeTech offer everything that you need for a complete B2B solution for brokers, but you can get that solution from the most financially secure company in the industry. We could not be happier to join the family and start this next exciting chapter at TradeTech Group with the newly launched TradeTech Alpha brand.”