Teddy Sagi's Playtech drops AvaTrade acquisition

Teddy Sagi

Playtech's dream of becoming a major player in the online foreign exchange trading market has been left in ruins.

Online gambling software provider Playtech Cyprus Ltd. (LSE:PTEC), controlled by Israeli billionaire Teddy Sagi, has dropped its bid to buy Israeli online forex platform AvaTrade. The deal has been cancelled even though the Central Bank of Ireland has agreed to hear its appeal against its orginal opposition to the acquisition.

In June, Playtech announced that its subsidiary Trade FX would acquire AvaTrade for $105 million. AvaTrade is a contract-for-difference (CFD) foreign exchange broker founded in 2006 by Emanuel Kronitz and Negev Nosatzki, which is based in Ireland. AvaTrade is involved in over 2 million deals per month worth $60 billion.

Sagi's dream of becoming a major player in the online foreign exchange trading trading market has now been left in ruins. Even before the AvaTrade deal was dropped, Sagi was handed a massive blow last month by the UK regulator Financial Conduct Authority (FCA), which conditioned Playtech's $700 million acquisition of Israeli contracts for difference trading company Plus500 (AIM: PLUS) on Sagi diluting his holding in Playtech to less than 33%.

Market sources believe that the FCA's demand was because Sagi had been convicted of securities offenses in Israel 20 years ago.

Published by Globes [online], Israel business news - www.globes-online.com - on December 13, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

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