Israeli business news outlet Calculist has reported that retail FX and CFDs broker Avatrade is seeking approval from Israeli ISA securities authorities for a change in its ownership structure.
Avatrade Ownership Change
Founded in 2006 by Emanuel Kronitz and Negev Nosatski, Avatrade is set to undergo a significant shift, with Israeli businessman Zvika Barinboim and his investment group acquiring a 50% stake by purchasing shares from Kronitz. Shuki Abramovich, who joined the company in 2009 after leading an investment from Clal Insurance, is also part of this transaction, which would allow Nosatski to remain involved and possibly increase his stake slightly.
Zvika Barinboim’s Background
Zvika Barinboim, who has interests in various technology and real estate sectors, previously attempted to break into the FX business in 2021, but that effort was blocked by Playtech shareholders. Following that, Playtech sold its brands FinalTo and Markets.com to Hong Kong-based investment firms.
While Avatrade was reportedly valued at around a billion dollars during discussions about a London IPO in 2021, those plans did not materialize.
As per Calculist, the proposed deal with Barinboim’s group values Avatrade between $400 million and $500 million. This deal includes acquiring shares from Kronitz and other minority stakeholders, while also introducing fresh capital into the firm.
M&A Activity in Retail FX and CFDs
The potential sale of Avatrade marks yet another significant transaction in the retail FX and CFDs space this year. In March 2023, management of Copenhagen’s Saxo Bank was acquired by SAFRA Group for $1.74 billion, and in February, Prop Trading Firm FTMO purchased Oand for an undisclosed sum, estimated to be in the mid to low nine-digit range. Recently, Israel-based Etoro went public, boasting a valuation exceeding $4 billion.
About Avatrade
Avatrade has its primary operations based in Israel, specifically from high-tech centers, yet it is officially registered in Ireland and holds a license from the Central Bank of Ireland. Its subsidiaries are also regulated in Israel, Australia, South Africa, Cyprus, Japan, and the UAE. The company reportedly operates 20 branches globally and employs around 450 people. Additionally, Avatrade is estimated to handle trading volumes of about $600 billion monthly, with an annual EBITDA around $90 million.
