Playtech acquiring forex trading platform Plus500 for £460 million
Playtech Plc agreed to acquire the forex trading platform company Plus500 for £460 million in cash. Forex stands for the’foreign exchange market’.
The move represents an effort to expand Playtech’s presence in the online trading platform business.
Playtech Plc, founded by Israeli billionaire Teddy Sagi, is an online gaming and sports betting company.
The company will pay 400 pence per share, an 8.1 percent premium to Plus500’s Friday close, marking the total value of the deal at £459.6 million sterling.
On Monday Playtech said:
“The combination of Plus500 with Playtech’s recently acquired TradeFX business will enable the combined business to maximise the market opportunity and product offering by utilising the strengths of both businesses.”
Plus500 deals in CFDs (contracts for difference), online trading in securities and commodities. The company generates revenue by charging a commission on the difference between the buy and sell prices.
Plus500 CEO Gal Haber said:
”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 24 July 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.”
According to Playtech, the acquisition is expected to be completed by the September-end.
Playtech expects that the acquisition will immediately increase earnings.