Teddy Sagi‘s Playtech, the gaming software giant is entering the forex market through its acquisition of TradeFX Limited, an online CFDs and binary options broker and trading platform provider.
Sagi paid $224 million for a controlling 91.1% stake, with an earn out payment of up to 250 million euros based on future performance. The deal is expected to close in May and would immediately add to its earnings, Playtech said on Thursday.
For the year ended 31 December 2014, the TradeFX Group generated pre-tax profit of $31.8 million and had gross assets of $94.3 million.
TradeFX is the ownership entity behind the Markets.com brand and its underlying technology. The group was backed by Teddy Sagi and was his main venture into the forex industry. Telesphere, a subsidiary of Sagi’s benefit trust, currently holds 86.45% of TradeFX.
Playtech has begun to get involved with providing technology to the trading industry with Keystone and marketed through Markets.com.
TradeFX reported marking 87% year-over- year growth and for 2015 $27.6 million in Q1 revenues from 23, 900 active customers and 10, 800 first time deposits.