Since floating and cashing in on Playtech on the London Stock Exchange (LSE) in 2006, Tedi Sagi has continued to seed new online ventures with an eye on eventual IPOs. Most recently, payment processing firm SafeCharge, whose operation includes providing services for an array of firms with whom Sagi is involved, as well as outside companies, was floated on the LSE’s Alternative Investment Market (AIM) in April.
Following on that tradition, Israeli media has reported that another Sagi owned venture, Crossrider, is preparing to float on the AIM at the value of about $57M (NIS200M). A provider of digital marketing and advertising services, Crossrider began as a developer of web browser extensions, and was in its self acquired by Sagi controlled Market.com (not to be confused by Markets.com) in late 2012 for $37M.
Since seeding Cypriot regulated broker Safecap in 2008 (known best by its brand, Markets.com), expectations were that it would be Sagi’s entrance into the online Forex trading world with the firm ending on the LSE as well. Because of Sagi’s involvement with Safecap’s founding, the company has always been on the top of the list of potential brokers that will go public.
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Becoming regulated in mid-2009 and launching its brokerage activities, Markets.com has had its share of ups and downs like many other firms during the same time period. Using an affiliate heavy strategy, the firm has built a reputation as offering competitive rates to partners. Website owners have also related to Forex Magnates that Markets.com has one of the better conversion rates, despite many of their trading products offering well below market trading conditions.
Now entering its sixth year of operation as Forex broker, the Safecap list of products includes both Forex and binary options trading, as well as white label technology services. In addition, they have a broad array of brands using their services, similar to Playtech’s formula of being an e-gaming ‘pick and shovel’ company instead of an online casino themselves. Recently, the company has also been involved in moving sections of its customers to it off-shore Belize regulated entity, which may be indicative of segregating its business to appease potential IPO investors.
Most importantly, insiders have reported to Forex Magnates sources that the broker has been cash flow positive for at least the last two years after initially spending heavily in its marketing efforts to break into the competitive industry. Overall, activity from Safecap appears to indicate that Sagi’s initial plans of achieving a Forex IPO remain intact. Therefore, the question of their floating is more a question of when and not if.