Playtech to Reinvent Financial Unit during Sale Reports
TradeTech, a financial trading unit under Playtech, is ready to go through a rebrand in January. This is coming after reports of the online casino game developer having talks about putting up its business for sale.
After going through a rebrand later in January, TradeTech will be known as Finalto. It has made it known that its new name is a better reflection of what it is about and how it carries out its business as finance is a significant part of its operations, and it is always interested in climbing higher.
Playtech’s freshly rebranded monetary unit will be rebranded officially at the end of January.
Statement from TradeTech
TradeTech's Head of Marketing, Kate Ryan, spoke to Finance Magnates, a famous financial trading news channel. He said that the firm, as well as its clients, will enjoy a fascinating new phase with this expected rebrand and that the firm is happy it was able to come up with a name that will play a role in helping them achieve their aim of becoming a force to be reckoned with in tech all around the world.
Playtech’s major enterprise includes offering the global gaming sector B2C and B2B services, and in 2017, it put together its financial trading division. This came after it acquired CFH Group in a deal that costs $120 million. It also acquired FX and CFD market maker Alpha Capital Markets for $150 million. TradeTech is a part of Playtech's retail FX brokerage unit Markets.com.
Rebrand Before Potential Sale
After having bad performances in 2019, Trade Tech could do a lot better in the first six months of 2020 regardless of an increase in trading volumes and market volatility that the coronavirus pandemic caused. In a report released by Playtech, TradeTech’s revenue went up by more than 123% in the first half of 2020. It hit €87.3 million. Also, basic earnings went to €52.8 million in the first six months of 2020 from €8.2 million in 2019.
Due to its bad performance in 2019, Playtech had no choice but to look at its financial unit critically. It also considered its future. Although its fortunes significantly improved in 2020, there were reports of the gambling firm looking to sell TradeTech.
According to an Israeli news channel report, insurance firms Menora and Phoenix, Israeli entrepreneur Zvika Barenboim, investment fund Fortissimo Capital, and local Bank Leumi had meetings about jointly acquiring TradeTech. In another report, Playtech asked for a bid of $200 million to $250 million for its financial wing.
At some point, Playtech confirmed that it was in talks with lots of interested parties to release its financial unit. It also noted that these talks were just beginning, and there was no guarantee they would end in a transaction.
Playtech’s CEO, Mor Weizer made it known that he was not under any pressure to release the business because of its recent performance. He revealed that Playtech would hold on to TradeTech if the right price was not forthcoming.