Completion of acquisition

RNS Number : 7290F

Plus500 Limited

20 July 2021

 

20 July 2021

Plus500 Ltd.

("Plus500", the "Company" or together with its subsidiaries the "Group")

Completion of acquisition

Plus500, a global multi-asset Fintech Group operating a technology-based trading platform, today announces that it has completed the acquisition of all of the membership interests of   Cunningham Commodities LLC. ("Cunningham") and Cunningham Trading Systems LLC. ("CTS") (together "the Acquisition"), as announced on 21 April 2021. Cunningham is registered as a Futures Commission Merchant ("FCM") with the US Commodity Futures Trading Commission (CFTC) , a member of the National Futures Association (NFA) and a clearing member of the Chicago Board of Trade (CBOT) , division of CME Group, Inc. (CME). CTS is a technology trading platform provider, operating in the futures and options on futures market in the US.

The Acquisition represents a major growth opportunity for Plus500 and is aligned with the Group's strategy of accessing future growth through both organic investment and targeted bolt-on acquisitions.

Together with the recent launch of the Group's proprietary share dealing platform ('Plus500 Invest') in selected geographies, the Acquisition represents another significant step in Plus500's transition towards becoming a global multi-asset Fintech Group with a diversified product portfolio. This has been achieved through this Acquisition by ensuring the Company can instantly expand its geographic footprint and product offering in the significantly growing, but under-penetrated, US retail trading market in futures and options on futures.

The Acquisition is expected to deliver a substantial opportunity for Plus500 to leverage its best-in-class technology to enable market access to the millions of US retail investors looking for new trading opportunities. Plus500 will continue to look for additional bolt-on acquisitions, to help facilitate its strategic objectives and further drive long term shareholder value in the future.

David Zruia, Chief Executive Officer of Plus500, commented:

" We are delighted to announce the completion of the Cunningham and CTS acquisition. With a combination of Plus500's best-in-class technology and Cunningham's and CTS's existing infrastructure, we expect to develop and scale the business in the growing US market and deliver long term shareholder value. The acquisition   represents an important strategic step for Plus500 as we continue to further establish our transition into a global multi-asset Fintech Group. We are excited by the significant potential opportunity derived from this acquisition   and the initial development of Plus500's footprint in the sizable and growing US market."

For further details Plus500 Ltd Elad Even-Chen, Chief Financial Officer Rob Gurner, Head of Investor Relations [phone] [phone] [e-mail] MHP Communications (for non-US-based media) Reg Hoare, Rachel Mann, Pete Lambie [phone] [e-mail] P rosek (for US-based media) D avid Wells, John Perilli, Forrest Gitlin [phone] [e-mail]

About Plus500 

Plus500 is a global multi-asset Fintech Group operating a technology-based trading platform. Plus500 offers customers a range of trading products, including Contracts for Difference ("CFDs") and share dealing, as well as futures and options on futures in the US.

The Group retains operating licences and is regulated in the United Kingdom, Australia, Cyprus, Israel, New Zealand, South Africa, Singapore and the Seychelles and through its CFDs product portfolio, offers more than 2,500 different underlying global financial instruments, comprising equities, indices, commodities, options, ETFs, foreign exchange and cryptocurrencies. Customers of Plus500 can trade CFDs in more than 50 countries and in 31 languages. Plus500 does not permit customers located in the US to trade CFDs.

In 2021, the Company acquired Cunningham, a Futures Commission Merchant, and CTS, a technology trading platform provider, both of which operate in the futures and options on futures market in the US, enabling Plus500 to have immediate access to that sizable and growing market.

Plus500 shares have a premium listing on the Main Market of the London Stock Exchange (symbol: PLUS) and are a constituent of the FTSE 250 index. www.plus500.com

About Cunningham and CTS

Based in Illinois, and established in 1982, Cunningham is registered as an FCM with the Commodity Futures Trading Commission (CFTC), is a member of National Futures Association (NFA) and is a clearing member of the Chicago Board of Trade (CBOT), division of CME Group, Inc.(CME).

Cunningham has a long-standing track record in the US futures and options on futures market, including strong relationships with direct customers, introducing brokers and futures exchanges, including the Chicago Mercantile Exchange, the Intercontinental Exchange (ICE) and Eurex.

CTS is a software company which has developed and operates T4, a sophisticated technology platform recognised by the leading futures exchanges which supports Cunningham and other FCMs to help their customers trade futures and options on futures contracts.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which is part of  UK law by virtue of the European Union (Withdrawal) Act 2018.

Forward looking statements

This announcement contains statements that are or may be forward-looking statements.  All statements other than statements of historical facts included in this announcement may be forward-looking statements, including statements that relate to the Company's future prospects, developments and strategies. The Company does not accept any responsibility for the accuracy or completeness of any information reported by the press or other media, nor the fairness or appropriateness of any forecasts, views or opinions express by the press or other media regarding the Group. The Company makes no representation as to the appropriateness, accuracy, completeness or reliability of any such information or publication.

Forward-looking statements are identified by their use of terms and phrases such as "believe", "targets", "expects", "aim", "anticipate", "projects", "would", "could", "envisage", "estimate", "intend", "may", "plan", "will" or the negative of those, variations or comparable expressions, including references to assumptions.  The forward-looking statements in this announcement are based on current expectations and are subject to known and unknown risks and uncertainties that could cause actual results, performance and achievements to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements.  Factors that may cause actual results to differ materially from those expressed or implied by such forward looking statements include, but are not limited to, those described in the risk factors in the Company's Annual Report and Accounts.  These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of such entity and the environment in which each will operate in the future.  All subsequent oral or written forward-looking statements attributed to the Company or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. Each forward-looking statement speaks only as at the date of this announcement.  Except as required by law, regulatory requirement, the Listing Rules and the Disclosure Guidance and Transparency Rules, neither the Company nor any other party intends to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

 

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