Published on December 1, 2015 in Industry News

PlaytechAfter many months of negotiation and discussion, Playtech has terminated the merger with Plus500.

The decision to end plans of the merger between the online gambling and support company, Playtech, and the smaller peer business, Plus500, was one that surprised many.

The news of the proposed merger which would see Playtech acquiring Plus500 for approximately £459.6 million was first released in June 2015. The deal was originally set to be completed by the end of September, but Playtech pushed that date to the end of December.

After much consideration of the concerns expressed by the UK Financial Conduct Authority, there were too many factors that could not be satisfied. 

A statement released by Playtech stated much of their decision making process and why they decided to close the merger. “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.”

The statement continued, saying: “Accordingly, the acquisition of Plus500 will not be proceeding as planned. Playtech will not incur any financial penalties with respect to the termination of the acquisition of Plus500. Playtech has no immediate plans with respect to its existing 9.9% holding in Plus500.”

Despite the failed merger, Plus500 chief executive, Gal Haber, stated that the company is still available to continue as normal.

“Following the agreement with Playtech that the merger between the companies will not proceed, we can confirm that our business is in good shape for a successful future as an independent company. Plus500 remains a growing, highly profitable and cash generative company with strong momentum in an expanding international market.”

In conclusion, Haber added: “We have adopted a ‘business as usual’ policy during the lengthy acquisition timetable and continued to invest in our marketing, technology and regulatory operations during this period. As a result, we are very confident that as an independent business we are well positioned to continue to deliver significant returns for shareholders including the declaration today of an intended interim dividend of $0.2121 per share and share buyback programme.”