Playtech to Rebrand Financial Unit amid Sale Reports
Playtech’s financial trading unit, TradeTech, is set to undergo a rebrand later in January, following news from the past several months that the gambling technology giant was in early discussions to sell the business.
TradeTech will rebrand as Finalto later this month, saying that the new name would better reflect what it does and how it does it as finance is at the core of its operations and it always aims higher.
The formal launch of Playtech’s newly rebranded financial unit is set to take place at the end of the month. Kate Ryan, TradeTech’s Head of Marketing, told financial trading news outlet Finance Magnates that the upcoming rebrand marks the start of an exciting new phase for the company and its clients and that they are extremely excited to have come up with a meaningful name that will help them reach their goal of becoming a major player in “global markets and tech”.
Playtech, a company whose core business includes the provision of B2B and B2C services for the global gambling industry, formed its financial trading division in 2017 after 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 FX brokerage unit Markets.com.
Rebrand Ahead of Potential Sale
After weak performance in 2019, TradeTech saw its fortunes 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 soared more than 123% during the reported period to €87.3 million, with underlying earnings going up from €8.2 million in 2019 to €52.8 million during 2020’s first half.
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 gambling technology powerhouse was considering selling TradeTech.
Israeli news outlets reported in September that the local Bank Leumi, insurance firms Menora and Phoenix, investment fund Fortissimo Capital, and Israeli entrepreneur Zvika Barenboim were in talks to table a joint offer for TradeTech. According to separate reports, Playtech was asking for an initial bid of between $200 million and $250 million for its financial trading business.
Playtech itself confirmed at one point that it was holding discussions with several interested parties to potentially sell its financial unit, but noted that those were at a very early stage and that “there can be no certainty that any transaction will be forthcoming or whether acceptable terms will be agreed.”
The company’s CEO, Mor Weizer, commented that he himself did not feel “any pressure to sell the business” given its recent performance and that they will definitely keep TradeTech if they don’t get the right price for it from interested buyers.
The post Playtech to Rebrand Financial Unit amid Sale Reports appeared first on Casino News Daily.