Gaming software and services supplier Playtech has struck a deal to acquire the entire issued ordinary share capital of Plus500 in a deal that values the Israeli spread betting company at approximately £459.6 million (€641.5 million/$702 million).
Under the agreement, which is due to be completed by the end of September this year, Plus500 shareholders will be entitled to receive 400 pence per Plus500 share in cash.
Playtech said the agreement represents a “unique” opportunity for the company, due to Plus500’s market reach, advanced technology, product offering, and its existing relationships with customers around the world.
The firm noted it intends to combine Plus500 with its recently acquired TradeFX service in order to utilise the strengths of both businesses and maximise market opportunities.
Playtech also stated it will provide Plus 500 with CRM capabilities and expertise to help maximise customer lifetime value and boost its standalone financial performance, while the Plus500 management will remain with the business for 12 months from completion of the acquisition to ensure a smooth transition to Playtech management.
“Having recently completed the acquisition of TradeFX, the opportunity to acquire Plus500 will prove transformational for our ambitions to expand Playtech’s wider offering,” Playtech chief executive officer Mor Weizer said.
“As an immediately earnings enhancing acquisition, the combination of the two businesses is compelling, enabling us to apply our market-leading products and services to the enlarged financial trading business as we continue to execute our growth strategy for the group.”
The deal comes after iGaming Business reported last month that Plus500 was forced to freeze thousands of customer account in order to carry out money laundering checks of its customer details.
Gal Haber, chief executive officer of Plus500, added: “We are very proud to have built Plus500 in a short time into a significant player in the CFD market.
“Having been admitted to AIM at a share price of 115p on July 24, 2013 and paid significant dividends during this time, we believe that now is the right time to combine the business with Playtech who can provide additional infrastructure and expertise to add to our core skills in products, technology and marketing.”
source : www.igamingbusiness.com
