Playtech to Acquire Plus500

The struggling Plus500 financial spread betting company may be thrown a lifeline by Playtech plc. Directors on both sides have announced an agreement on terms associated with a cash acquisition of Plus500's share capital. Mor Weizer, chief executive officer of Playtech had this to say regarding the acquisition on Monday: "Having recently completed the acquisition of TradeFX, the opportunity to acquire Plus500 will prove transformational for our ambitions to expand Playtech's wider offering. As an immediately earnings enhancing acquisition, the combination of the two businesses is compelling, enabling us to apply our market-leading products and services to the enlarged financial trading business as we continue to execute our growth strategy for the Group." Plus500 CEO Gal Haber said: "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."