Playtech’s appeal related to AvaTrade acquisition succeeds, deal stays called off

Playtech’s appeal related to AvaTrade acquisition succeeds, deal stays called off

Gambling platform developer Playtech said on Tuesday its appeal against the Central Bank of Ireland’s (CBI) decision to oppose its application to acquire Irish-regulated forex broker Ava Trade has succeeded. However, since the shareholders of Ava Trade terminated the share purchase agreement last month, the deal has been concluded, Playtech said in a filing with the London Stock Exchange (LSE).

Anyways, the acquisition application has been referred back for reconsideration to the CBI by the Irish Financial Services Appeals Tribunal.

Playtech entered in July in a $105 million agreement to acquire Ava Trade through its subsidiary TradeFX, which it acquired earlier this year.

In October, the CBI, which acts as a regulatory body for forex activities in Ireland, opposed Platech’s acquisition of Ava Trade and triggered a termination right for the sellers of the broker. Ava Trade’s shareholders decided to call off the acquisition agreement with Playtech after the developer announced it terminated the proposed acquisition of Plus 500, another forex broker, due to its concerns of being unable to meet the requirements of the UK’s Financial Conduct Authority (FCA) by the set deadline. Under the agreement with Plus 500, the acquisition could be terminated if not finalized by the end of the year.

Playtech said at the time the broken deal with Plus 500 increased the risk that the owners of Ava Trade may exercise their right to trigger the termination of the merger agreement, as they later did. The company has said it would not incur any financial penalties other than forfeiting the previously announced $5 million non-refundable deposit already paid by it on the signing of the acquisition.

The gambling software developer also owns two other trading services provider – forex broker and binary options broker TopOption.

Ava Trade, headquartered in Dublin, has regional offices and sales centers in Paris, Dublin, Milan, Tokyo and Sydney.

Source: LSE

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