Playtech Buys Out Bitcoin CFD Trading Platform Plus500 in a £460m Deal

By June 1, 2015Bitcoin Business
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Playtech Buys Out Bitcoin CFD Trading Platform Plus500 in a £460m Deal

World’s largest online gaming software provider Playtech’s Cyprus branch is reportedly buying out the online contracts for difference trading platform Plus500 in an all-cash £459.6 million deal.

Teddy Sagi, who controls Playtech Cyprus Ltd. (LSE: PTEC), announced that his company was buying the Israeli online Bitcoin and other instruments CFD trading company. Shares of Plus500 (AIM: PLUS) closed at 369.9 pence on Friday. Shareholders will receive in cash 400 pence for each share. Both the companies are traded on the London Stock Exchange (LSE).

Roughly two weeks back, shares of the Bitcoin CFD trading group crashed more than 40% as half of the accounts of UK customers were abruptly suspended, and raised fears that the accounts were being used for money laundering.

On the decision to acquire the troubled company, Playtech explained, “On 18 May 2015, Plus500 announced that the UK Financial Conduct Authority (“FCA”) had required a review of its Anti-Money Laundering (“AML”) financial sanction systems and other related regulatory controls which led to Plus500UK Limited (“Plus500UK”) prohibiting all transactions for existing customers until additional AML procedures have been completed. As a result, Plus500UK ceased on-boarding new customers.

Playtech estimates the acquired company to immediately contribute to the company’s earnings.

Playtech’s CEO Mor Weizer expects the acquisition to help the company expand its market offerings.

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.

The acquisition must have come as a sigh of relief for investors who were losing money following the strong depreciation. As the deal is priced higher than the market price, investors may also make some good money or at least reduce their losses.

Teddy Sagi, who controls Playtech Cyprus Ltd. (LSE: PTEC), announced that his company was buying the Israeli online Bitcoin and other instruments CFD trading company. Shares of Plus500 (AIM: PLUS) closed at 369.9 pence on Friday. Shareholders will receive in cash 400 pence for each share. Both the […]

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