The Marriage of Playtech PLC and Plus500
Forex meets online gaming software manufacturer: the prospects are reassuring for both companies.
As far as gambling industry developments go, the day when a retail forex trading and an online gaming software company come together is really a remarkable day. PlaytechPlc bought Plus500 for a whopping GBP 460 million. The purchase will open new horizons that’ll be beneficial for both companies.
According to Reuters, Plus500 is not the gambling software company’s first purchase in the area of trading. With happenings in the economic world, like the erased ceiling on the Swiss Franc lead to an increase in mergers and acquisitions in the trading market.
There will be a boost in Plus500 revenues
The gambling software developers also agreed to purchase TradeFX, also a trading website and a service providing payment options for USD 224 million. There were also rumors that Playtech would buy AvaTrade which is also a forex site. Reuters reported that Playtechshers on June 1 dropped 5%, while Plus500 shares rose by 9%.
Since Playtech’s deal was to give 400 pence for each share, an 8.1% premium for the value of the shares on May 29, earnings were added on the spot. But it seems like it’s a risky decision for Playtech, because Plus500 brings with it some issues that, as Nick Batram analyst said, make the market “nervous.”