Matt Davey

NYX Gaming takes Chartwell and Cryptologic businesses for £80m

Matt Davey
Matt Davey

NYX Gaming Group has snapped up the Chartwell Technology and Cryptologic businesses from Amaya via a share purchase agreement valued at CA$150,000,000 (£80.8m). The transaction is anticipated to close before the end of the third quarter of 2015 and is subject to financing and other customary closing conditions.

Amaya said that the sale is consistent with its previously announced plan to divest its various B2B assets and use the proceeds to pay down debt and/or buy back shares under its previously announced normal course issuer bid.

Amaya recently announced plans to spin off its subsidiary Diamond Game, and to sell its Cadillac Jack business to AGS, LLC, an affiliate of funds managed by Apollo Global Management for $476m (£256m).

As part of the deal, a subsidiary of Amaya and NYX anticipate entering into a supplier licensing agreement for a term of six years, under which NYX will provide certain casino gaming content to Amaya’s real-money casino offering which Amaya intends to integrate into the PokerStars and Full Tilt branded casino websites. This will provide NYX with a minimum licence commitment in the amount of $12m (£6.5m) per year for each of the first three years of the licensing agreement.

David Baazov, CEO of Amaya, said: “We are pleased to further deepen our relationship with NYX as a strategic partner and supplier to our B2C online casino operations. The transaction is consistent with our stated strategy of divesting our non-core B2B assets, while still giving us the ability to offer popular games and new and innovative titles on a regular basis from Chartwell, Cryptologic and now NYX.”

NYX said it intends to finance the acquisition through a combination of cash on hand, new debt and/or issuance of equity. Canaccord Genuity is acting as exclusive financial advisor for NYX with respect to the Acquisition.

Matt Davey, CEO of NYX, added: “We are excited about this acquisition and partnership, which will provide NYX with additional leading gaming content and access to what we believe will be one of the world’s fastest growing online casinos. As part of our agreement to acquire Ongame we negotiated a right of first offer to purchase the Cryptologic and Chartwell business as we saw it as highly strategic to our existing business.

“This transaction completes the strategy we embarked upon with Ongame. We believe there to be a substantial growth opportunity in the PokerStars and Full Tilt casino offering, which we anticipate benefiting from as part of our licensing agreement with Amaya.  We have substantial equity and debt financing options available to us to fund the acquisition.”

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