Gaming software and services supplier Playtech has conditionally agreed to acquire a 91.1% stake in TradeFX, an online CFDs and binary options broker and platform provider.
The deal includes an initial cash payment of €208 million ($225.1 million) and an earn-out payment of up to €250 million based on future performance.
Playtech said the acquisition offers a “compelling opportunity” to enter the growing and complementary vertical driven by similar core competencies.
The company also noted that the deal is directly in line with its strategy to acquire “profitable, regulated, highly cash generative” businesses that hold “market-leading” positions.
TradeFX, which provides services in more than 100 countries around the world, posted earnings before interest, tax, depreciation and amortisation of $34.9 million in 2014, as well as a group margin of approximately 40%.
Mor Weizer, chief executive officer of Playtech, said: “In addition to being immediately and significantly earnings enhancing, the payment terms for the acquisition are weighted towards future financial performance of the business.
“TradeFX's proven management team has a strong cultural fit with our business and is incentivised to stay with the enlarged group.
“The acquisition adds weight to the strong momentum with which we have started the year and which has continued throughout the first quarter.
“Following the acquisition, Playtech will retain significant resources to continue to pursue further acquisition opportunities.”