Advised CFH Group, a leading provider of FX trading and technology solutions to banks and brokers, on its sale to Playtech
Nov 2016
acquired by
$120 million
  • Sector: Digital Banking & Payments
  • Deal Type: Strategic Deals
  • Engagement type: Sellside
  • Size: $120 million
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Arma Partners is pleased to announce that it has acted as exclusive financial advisor to CFH Group on its sale to Playtech plc (LSE: PTEC).

Headquartered in Copenhagen, Denmark, CFH is an award-winning provider of FX trading and technology solutions to banks and brokers globally. CFH offers a unique, proprietary trading technology platform that enables the end-to-end process of FX trading, including the provision of front-end interfaces, risk management tools, order and execution management systems, clearing and FX trading educational services.

The acquisition of CFH will strengthen Playtech’s entry into the B2B market of financial trading and enable CFH to offer an increased suite of products and continue to grow trading volumes.

This transaction demonstrates Arma Partners’ strong expertise in the FX technology sector and our outstanding track record of delivering strategic buyers for founder-backed businesses.

– CFH is a leading Danish FX technology player with products including Straight Through Processing brokerage, which provides retail brokers with multi-asset execution, prime brokerage services, liquidity and complementary risk management tools

– CFH has over 400 customers and partners worldwide in more than 80 countries, servicing thousands of retail customers worldwide

– CFH is one of the top STP venues in the world with award-winning liquidity services and $1.5bn in direct interbank credit lines with tier 1 banks

– Revenue and adjusted EBITDA generated in FY15 were $19.2m and $5.7m, respectively

– Playtech is a market leader in the gambling and financial trading industries

– Playtech’s business intelligence driven gambling software offering includes casino, live casino, bingo, poker and sports betting

– Playtech supplies many of the world’s leading regulated online, retail and mobile operators, land-based casino groups, government sponsored entities such as lotteries, and new entrants opening operations in newly regulated markets

– Playtech is listed on the Main Market of the London Stock Exchange and is headquartered in the Isle of Man

– CFH will be able to provide its customers with improved trading terms and more attractive margins, due to Playtech’s scale and financial strength

– CFH customers will have access to a deeper pool of liquidity through the addition of intra group liquidity arrangements, enabling more competitive prices and faster execution

– CFH will have access to the Playtech’s Financials division’s wide range of CFD instruments, which CFH will be able to offer on its clearing system over time

– CFH’s customer base will have access to Playtech’s proprietary trading platform alongside the Playtech Group’s CRM technology, mirroring Playtech’s B2B offering in the Gaming division

– Arma Partners was engaged to run a process around a number of credible buyers with minimal disruption to the core business

– Arma Partners successfully guided CFH Group through a competitive M&A process involving a large number of potential counterparties

– Arma Partners supported CFH Group and Playtech to assess potential synergies

– This transaction demonstrates Arma Partners’ strong expertise in the FX technology sector and our outstanding track record of delivering strategic buyers for founder-backed businesses