UK newspaper The Daily Telegraph has reported this weekend that William Hill will team up with Canadian TSX listed igaming technology supplier NYX Gaming, as it prepares a £300 million bid for leading betting technology provider OpenBet.
The newspaper reports that William Hill governance will financially assist NYX Gaming’s bid for independently owned OpenBet.
NYX Gaming who floated on the Toronto TSX in January 2015, for CAD $45 million have a present market capitalisation range of CAD $130 million (£65 million). The firm’s £300 million takeover bid of OpenBet would therefore be heavily leveraged by William Hill investment.
The joint funded bid would see William Hill prepare its first acquisition in the rapidly consolidating online betting sector. Led by CEO Matt Davey NYX Gaming has prior industry M&A experience having brought content/software providers Chartwell and Cryptologic from a combined £80 million in April 2015.
Entering 2016, Openbet has been at the centre of industry speculation as a prime takeover/acquisition target. The company which provides online betting platforms for tier 1 operators William Hill, Paddy Power, Ladbrokes and Coral has been advised by Morgan Stanley, as private equity owner Vitruvian Partners looks to sell its asset.
Vitruvian are reported to be considering offers for OpenBet valued between £250-300 million. UK financial news sources strongly expect ‘cash rich’ FTSE listed gambling technology provider Playtech Plc, to bid for Openbet as the firm seeks to strengthen its position within the sports betting sector.