Playtech-Plus500 Merger Deal Terminated

The planned Playtech-Plus500 merger deal has been terminated after the two online gambling companies mutually decided that they’d be unable to satisfy FCA concerns.

In UK gambling news, both Playtech and Plus500 have pulled out of the longstanding proposed Playtech-Plus500 merger. This shocking development follows Playtech’s statement from last week, in which the online gambling giant said that it was confident the deal would be completed before 2016.

News of the Playtech-Plus500 merger broke out last June, with the £459.6 million acquisition deal set to be finalized by September. The deal was then delayed to the end of the year due to its high-profile nature and pressing concerns from the UK Financial Conduct Authority (FCA). Despite the setback, both companies remained confident that the deal would be closed by January.

However, over the weekend both Playtech and Plus500 came to the conclusion that they’d be unable to satisfy the FCA and so would let the deal fall through. Playtech explained in a statement that: “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 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.”

Plus500 still able to survive and thrive without the Playtech-Plus500 merger

In spite of the termination of the deal between the two online gambling sites in UK, Plus500 remains confident that the company can continue to flourish independent of Playtech. Plus500 chief executive Gal Haber said of the failed Playtech-Plus500 merger that: “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 expanding international market. 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.”