The Plus 500 (LON:PLUS) saga took an interesting twist this morning as FTSE 250 software developer Playtech announced that it is to buy the troubled Spreadbetting and CFD trading company for £459.6 million. Playtech have jumped on the opportunity to capitalise on recent misfortunes at Plus 500 and has said they will pay 400p per share for the company, a 48% discount to intraday highs of 778p on 15th May.
Plus 500 has been the subject of an FCA probe that forced them to freeze trading accounts which spurred a flurry of negative broker comments and a suspension of shares.
Shares in Plus 500 traded as low as 195p in the wake of a number reports suggesting the shares were worth less than £1. The move by Playtech will come as a relief to management at Plus 500 as it draws the recent volatility to a close and gives some certainty for the future.
“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.” Said Gal Haber, Plus 500 CEO.
The acquisition will support Playtech’s current portfolio and further their expansion strategy.
“Having recently completed the acquisition of TradeFX, the opportunity to acquire Plus500 will prove transformational for our ambitions to expand Playtech’s wider offering, Mor Weizer, Chief Executive Officer of Playtech said.
Shares in Plus 500 trade at 376p +1.6%