Playtech to raise £250m to fund new acquisitions

Online gaming company Playtech said it planned to raise £250 million via a share placement to fund the purchase of Plus500, a retail forex trading shop, and other potential deals.

Playtech proposes to place up to 29.05 million shares, representing about 10 per cent of the company’s current share capital, with investment institutions via an accelerated bookbuild.

“Today’s equity fundraising, in conjunction with new debt facilities, which we are in the process of securing, will improve the efficiency of Playtech’s capital structure whilst maintaining the financial flexibility to pursue acquisitions,” chief executive Mor Weizer said in a statement on Thursday.

The Isle of Man-based Playtech agreed to buy TradeFX, a trading platform and payment services provider, and Plus500 earlier this year to bolster growth.

Canaccord Genuity and UBS are joint bookrunners for the placing, while Shore Capital is the lead manager.

Playtech said its core business continued to perform strongly with average daily run rate revenue rising more than 25 per cent in the second quarter.

Reuters