1st Jul 2015 13:27
LONDON (Alliance News) - FTSE 250-listed gaming technology company Playtech PLC on Wednesday said it has struck a USD105 million deal to buy contracts-for-difference broker Ava Trade, exercising an option it acquired when it bought TradeFX.
The deal confirms a report from Reuters in May, which said Playtech was close to agreeing a deal to exercise its option to buy Ava Trade as part of the TradeFX deal.
Playtech added that it has also secured a new EUR200 million unsecured revolving credit facility through Barclays Bank PLC and Royal Bank of Scotland PLC, which will be used, alongside other recently-raised funding and existing cash resources, to fund its acquisition drive.
The new loan facility comes after Playtech raised GBP227 million in June via a share issue to fund its acquisitions.
In addition to Ava Trade, Playtech has made a bid to acquire troubled AIM-listed contracts for difference broker Plus500 Ltd for GBP459.6 million and struck a deal to buy TradeFX for EUR458 million in April, its first foray into the foreign exchange trading platform business, having previously focused its operations on software and technology for the gaming industry.
"The acquisition of the Ava Group is another important milestone in Playtech's strategy to expand and enhance its overall technology offering through multiple vertical markets. Since the recent earnings-enhancing acquisition of TradeFX and the creation of our financials division we have sought further opportunities to broaden our reach into this vertical," said Playtech Chief Executive Mor Weizer.
Playtech shares were up 1.4% to 830.00 pence on Wednesday.
The deal for Plus500, agreed in early June, came after Plus500 had battled through a torrid month in which it was forced to suspend UK customer accounts amid concerns about its anti-money laundering processes, defend its accounting policies and to confirm that it had paid its dividends, all of which sent its share price tumbling lower, leaving it vulnerable to a takeover bid.
Plus500 confirmed during May that the UK's Financial Conduct Authority required it to verify its customers in the UK and ask them for documentation in doing so. It also had to defend its accounting policies during the month, after it became a target for short-sellers who have questioned both its business practices and accounting. Also during May, the company had to confirm it had paid its final and special dividend following market speculation it had not done so, another contributor to its share price fall.
On Tuesday, Plus500 had said 72% of its UK customers whose accounts were frozen under the anti-money laundering initiative were now active again. It said it had fully reviewed and unfrozen 13,499 UK customers, meaning they can now trade, deposit and withdraw funds.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Plus500Playtech