Reportedly, gaming software developer Playtech PLC will soon purchase online trading services provider Plus500 Ltd for about 703 million dollars or 460 million pounds. That’s despite an ongoing review of the contracts-for-difference trader’s money laundering systems and controls by UK regulators.
Millions in losses from the sudden removal of a long-held ceiling on the Swiss franc in January spurred a merger and acquisition boom that many major companies in the online currency trading market had long assumed.
“The directors of Playtech and Plus500 believe that there is strong potential for synergies through the combination of Plus500 and TradeFX, as well as the opportunity to continue to grow through further consolidation in the industry,” the companies said in a statement.
Playtech, owned by Israeli billionaire Teddy Sagi, said it would pay 400 pence per share, an 8.1 percent premium to Plus500’s Friday close. However, Chief Executive Officer Mor Weir said during a call with investors that the takeover might not take place in case “certain material adverse change” that affects Plus500’s business occurs. If the said deal is accomplished, it’s already expected to add to earnings immediately.
According to the gambling firm, the Plus500 management will remain with the business for at least twelve months following completion to secure a smooth transition to Playtech management.
The company officials said they expect the acquisition to be completed by the end of September, subject to regulatory approval. Moreover, Sagi, founder and largest shareholder in Playtech, is to vote in favor of the purchase.
Reportedly, the top-ranked gambling firm also acquired majority stake in trading platform and payment services provider TradeFX in April before the potential acquisition of Plus500 had been announced.
It shouldn’t come off as a surprise, really, as Plus500 needs the online gambling firm Playtech. It has to bounce back from the recent freezing of its trading accounts of customers and the only way is to close that deal with Sagi’s company. If Plus500 officials really want to solve their problems quickly, they’d do anything to push through with that acquisition. After all, they’re running out of time to gain back the millions of loses their company has had