Playtech-Plus500 Merger to be TerminatedPublished November 24, 2015 by Lee R
Meeting regulatory concerns played a big part in Playtech's reversal of field.
The Playtech-Plus 500 deal is dead. Just like that, the bold new deal has died on the vine, despite Playtech's stated commitment just last week to have an agreement in place by the end of the year.
In June, the news originally came out that Playtech had agreed to a deal to acquire Plus500 for approximately £459.6 million (€655.3 million/$696.9 million). Set to be finalized in September, the deal had experienced one delay resulting in a push back to the end of the year.
The delay was attributed to concerns from the UK Financial Conduct Authority, with Playtech stating last week that the a decision on its FCA application was due next month, which left Playtech confident of closing a deal before the end of the year.
Obviously, Apparently, Playtech rethought is position over the weekend, declaring itself unable to effectively address the concerns of the FCA, releasing the following statement to the press:
“The company has discussed with Plus500 the consequences of the recent developments with the FCA and has agreed to the termination of the merger agreement.”
Playtech was also quick to point out that the company would not incur any financial penalties as a result of the termination of the acquisition of Plus500, and further declared that its existing 9.9% holding in Plus500 would remain unaffected.
“Playtech has no immediate plans with respect to its existing 9.9% holding in Plus500.”
Plus500 CEO Gal Haber remained confident of his company's position, assuring the press that the company was still in “good shape” to continue operating independently, stating that: “Plus500 remains a growing, highly profitable and cash generative company with strong momentum in an expanding international market.”
Haber asserted his company remains adaptive, with a “business as usual” policy that enables continued investment in marketing, technology and regulatory operations during this period.