Israeli Tycoon Barinboim to Acquire AvaTrade in $500M Forex Deal

Israeli businessman Zvika Barinboim is on the brink of acquiring a controlling stake in AvaTrade, one of the leading forex trading platforms globally, in a deal valued at up to $500 million. Sources familiar with the matter revealed that the acquisition, which is currently under review by Israel's Securities Authority, will involve a combination of share purchases from current shareholders and the issuance of new shares. This move would see Barinboim, along with his group of investors, gaining approximately 50% ownership of the company.

AvaTrade, originally founded in 2006 by Israelis and headquartered in Ireland, has evolved into a major player in the forex trading market. The platform now operates in over 20 countries, offering services to a global community of 400,000 traders. With a monthly trading volume of around $60 billion, the company boasts an annual EBITDA estimated at $90 million. The acquisition could be a significant step for both Barinboim and AvaTrade, given the growing valuations in the retail trading sector.

Emanuel Kronitz, one of the co-founders of AvaTrade, is expected to sell his entire 35% stake in the company. Meanwhile, co-founder Negev Nosetzky plans to increase his holdings in the firm. Other minority shareholders, including Shuki Abramovich, Moshik Lipetz, and Ilan Klik — each holding 5% — may also take part in the sale.

AvaTrade's potential acquisition highlights the increasing value of companies in the retail trading industry, a sector that has witnessed substantial growth. For instance, eToro, one of Israels best-known trading platforms, recently achieved a valuation of $4.4 billion during its IPO.

Rival platforms like Plus500 have also seen their market capitalization rise to $3.3 billion, while Denmarks Saxo Bank was valued at $1.7 billion in a recent deal. These rising valuations have made the market even more competitive, with the price of acquiring a company like AvaTrade likely to have risen significantly had negotiations started today.

The ultimate goal for Barinboim and his investor group is to take AvaTrade public. A source close to the deal suggested that the valuation could have been much higher if the acquisition had been initiated later. The future public listing of AvaTrade could be a significant milestone for the firm, helping to further solidify its position in the global forex trading landscape.

This is not Barinboim‘s first foray into the trading and finance industry. In 2021, he nearly acquired Playtech’s TradeTech unit, though the deal was ultimately shelved after a competing bid from Chinese firm Gopher. Barinboim‘s group did, however, receive $10 million in breakup compensation. More recently, Barinboim’s efforts to acquire Cyprus-based payments company Paybel ended in a lawsuit involving half a billion shekels.

In addition to his ventures in the trading and finance sectors, Barinboim is also the owner of a major stake in Nara, a private hospital chain, and has experience in growing businesses through investor syndicates. His business portfolio includes a past acquisition and sale of the clothing brand Polgat, and he holds an 11% stake in the company Manara Yahs.

For AvaTrade, this acquisition marks an important chapter in the company‘s journey, as the final approval by regulatory bodies looms large. If successful, this deal would solidify the company’s place among the giants of the forex trading world. The acquisition of a forex trading broker like AvaTrade by Barinboim is expected to attract significant attention within the industry, paving the way for more investment opportunities in the market.

About AvaTrade

AvaTrade is a global forex trading platform founded in 2006 by Israelis and headquartered in Ireland. It operates in over 20 countries, providing trading services to 400,000 clients worldwide. The platform facilitates a monthly trading volume of around $60 billion, with an annual EBITDA estimated at $90 million. AvaTrade offers a wide range of trading tools and services, including forex, commodities, stocks, and cryptocurrencies, making it one of the leading brokers in the retail trading industry.

As AvaTrade continues to make significant strides in the forex trading industry, now is the perfect time to explore their platform. Discover more about AvaTrade and its offerings here: https://www.wikifx.com/en/dealer/8261153765.html