Las Vegas-based NYX Gaming Group, to whom Canada’s Amaya Gaming granted the “right-of-first-offer” to purchase its subsidiary Amaya Inc., announced that the acquisition deal is to push through. Amaya Inc. is the business-to-business (B2B) segment of the Amaya Group that manages the Canadian gaming company’s Cryptologic and Chartwell Technology subsidiaries.
Widely recognized as one of today’s leading gaming solutions provider, the NYX Gaming Group has entered into a share price agreement with the Amaya Group, covering the entire issued capital shares of Amaya Inc. The agreed share purchase price for the acquisition of the B2B subsidiaries is for CA$150 million (US$119.5 million), with considerations for future working capital adjustments and subject to regulatory approvals.
The deal is expected to attain completion by the end of the third quarter. After completion, the NYX Gaming Group, will ink a six-year preferred supplier-licensing contract as provider of assorted real-money casino gaming content to Amaya Casino.
The NYX gaming content agreement and the integration of Amaya Casino into the now Amaya-owned PokerStars and Full Tilt websites, will give PokerStars and Full Tilt customers access to a bigger library of contents, comprising game titles furnished by NYX, Cryptologic, and Chartwell. The combined titles will expand the NYX library from a previous count of 350 to 650 games, and growth of its customer base from 130 to over 170.
NYX Gaming Group’s Chief Executive Officer Matt Davey expressed excitement about the new acquisition and the forthcoming partnership. He remarked that the deal will provide his company with additional popular gaming content, and access to what they believe will be one of the fastest growing online casinos in the world. He added that NYX Gaming is bound to benefit from the licensing agreement with Amaya, since they foresee considerable growth opportunity in PokerStars’ and Full Tilt’s casino offering.
The NYX CEO also made mention that they have substantial equity and options for debt financing, as sources of funds for the acquisition. Amaya CEO David Baazov is likewise pleased in deepening further their relationship with the NYX Gaming Group, by being a strategic supplier and partner to Amaya Gaming’s business to customer (B2C) online casino business. As had been previously announced and stated, their current strategy includes divesting the company’s non-core business-to-business assets.
He elaborated that the acquisition transaction entered with NYX Gaming is not only consistent with that strategy; but also gives them the ability to add popular, new, and innovative titles to their online casino offerings coming from NYX, Chartwell, and CryptoLogic. Apparently, the B2B divestiture will bring in proceeds that Amaya will use to ease out its debt, as well as enable the company to repurchase shares under the previous normal course issuer bid.
The new NYX Gaming acquisition deal and the recent sale of the Cadillac Jack business to AGS, and the impending spinoff of another subsidiary Diamond Game, will bring in funds that will allow Amaya Gaming to reduce its debt. The company estimates to attain Adjusted Net Leverage Ratio of 1:4 or 1:4.5 by December 31, 2015.