Playtech strikes another deal as they affirm Plus500 acquisition
01 June 2015
Online gaming software company and service provider Playtech, will be acquiring the entire share capital of Plus500 in a confirmed acquisition of $702 million dollars. Plus500 is a well-established financial company who provides online trading services to retail customers and offers contracts for difference (CFD) on a range of financial markets. Playtech’s deal offering will be at $6 dollars per share.
With its wide market reach, product offering, advance technology and existing relations with clients globally, it sure is an agreement with a unique sense of business opportunity for Playtech. The online gaming company intends to merge its recently acquired tradefx service with Plus500 to maximise strength and market opportunities. While Plus500 management will remain with the company for an extended 12 month period post-acquisition, Playtech will provide the company with CRM capabilities and insight to assist and maximise client longevity and value along with increase financial performance, as Playtech management want to ensure a well-rounded transition phase into the online gaming management.
Chief executive officer of Playtech, Mor Weizer commented saying: “Having recently completed the acquisition of TradeFX, the opportunity to acquire Plus500 will prove transformational for our ambitions to expand Playtech’s wider offering. 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.”
Chief executive officer of Plus500, Gal Haber commented saying: “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 $1.75 dollars 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.”
Playtech made its first venture into the trading market buying TradeFX in a $500 million dollar deal. Playtech firmly believes that the trading platform is complementary to gaming companies operations. Having virtually all the online gaming platform offering creations , products and services in place, diversifying into a stronger global market surely makes Playtech the world’s largest online gaming software company.