AvaTrade Denies Selling Business to Teddy Sagi's Playtech
Teddy Sagi’s bid for forex brokerage AvaTrade has not been concluded as suggested in a media report by Reuters yesterday
Teddy Sagi’s attempt to acquire forex brokerage AvaTrade via publicly traded Playtech has not been materialized as suggested in a media report by Reuters yesterday. The companies have been holding preliminary talks as Playtech has expressed interest in AvaTrade’s business, but contrary to the reports, the gaming company did not hold an option to purchase a stake in it.
According to data from the Finance Magnates Quarterly report, AvaTrade reported its trading volumes close to $40 billion a month, or on average $1.9 billion daily in the first quarter of 2015. Any prospective deal would build a solid base under the forex business of Playtech especially after it acquired TradeFX Group earlier this year.
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Playtech was listed on the London Stock Exchange Alternative Investments Market in 2006, and subsequently moved to the main market. Teddy Sagi’s share in the company is a little more than one third. The firm is providing a software solution for trading binary options and has recently expanded its business deeper into financial products by purchasing TradeFX Group, spearheaded by the brand Markets.com.
The acquisition has brought in a number of other labels under the umbrella of Playtech, which is considering several deal opportunities in order to strengthen its retail forex and binary options portfolio. Finance Magnates has reported on talks with IronFX, including a meeting at the broker’s headquarters in Cyprus.
The negotiations with AvaTrade are understood to be part of ongoing discussions, which have not resulted in a finalized deal so far. Finance Magnates will keep following the story and update our readers with any developments.
Teddy tried to buy them on a multiple of 4 … the market around is bidding at a multiple of 7-8.
He is trying to buy cheap , that’s it.
@John that’s what I was thinking. No one goes and leaks to multiple media sources that they have a suitor unless they are really trying to get another offer on the table.
City Index got @ a multiple of 5, so I give it a week until this deal happens with a slightly better offer.
Teddy tried to buy them on a multiple of 4 … the market around is bidding at a multiple of 7-8.
He is trying to buy cheap , that’s it.
@John that’s what I was thinking. No one goes and leaks to multiple media sources that they have a suitor unless they are really trying to get another offer on the table.
City Index got @ a multiple of 5, so I give it a week until this deal happens with a slightly better offer.
What are the latest developments about the acquisition? Does it keep going?
Or just a rumor totally? Thank you!
@Lucas – Sagi was sourced to have visited a few firms both before and after Playtech announced its acquisition of his Markets.com venture. The prevailing theory that I heard from multiple sources is that there is currently little interest from institutional investors for forex firms in the public markets. So going public is easier said than done, and Tedi Sagi along with some other firms have been using this situation to place bids as on a few brokers as an alternate for them instead of going public. A lot of these discussions began right after the Jan 15th Swiss Franc… Read more »
What are the latest developments about the acquisition? Does it keep going?
Or just a rumor totally? Thank you!
@Lucas – Sagi was sourced to have visited a few firms both before and after Playtech announced its acquisition of his Markets.com venture. The prevailing theory that I heard from multiple sources is that there is currently little interest from institutional investors for forex firms in the public markets. So going public is easier said than done, and Tedi Sagi along with some other firms have been using this situation to place bids as on a few brokers as an alternate for them instead of going public. A lot of these discussions began right after the Jan 15th Swiss Franc… Read more »