SBC News Voice of the Sports Betting Industry
Toronto TSX-listed NYX Gaming Group has updated the market, announcing that it has entered a ‘binding share agreement’ to purchase 100% of Openbet from private equity firm Vitruvian Partners LLP.
NYX Gaming governance disclosed that it has placed a total consideration of £270 million for Openbet assets, which will include the repayment of the firm’s existing £95 million debt.
The Toronto firms acquisition will be con-funded by operators William Hill and Sky Betting and Gaming (SB&G) who have agreed to contribute £100 million in combined equity investment (William Hill to contribute £80 million / SB&G £20 million).
In February William Hill governance had agreed to partner with NYX Gaming, to create a ‘special vehicle’ for the full acquisition of Openbet, targeting a £300 million investment. Following today’s announcement, the William Hill is set to invest an additional £10 million equity in NYX Gaming creating a three-year development programme to modernise OpenBet’s technology.
Throughout 2015/2016, the betting technology provider has been at the centre of speculation regarding its acquisition, with many industry analysts citing rival Playtech as its likely buyer
Issuing a corporate statement, NYX Gaming governance outlined its motives for the acquisition
Confirming its binding agreement Matt Davey, NYX Gaming CEO commented on the deal:
“The acquisition of OpenBet by NYX completes the portfolio of industry-leading products and services we offer to our customers. They are two highly complementary businesses with key strengths in regulated markets, technology services and gaming content. It positions NYX as the leading provider of B2B betting and gaming solutions on a global scale. We are looking forward to working with OpenBet and their customers to help them to deliver world class experiences to their players”
Jeremy Thompson-Hill, CEO of OpenBet further commented: “The joining of OpenBet and NYX is a natural union born out of synergies in product, the customer base and, importantly, culture. It will enable us to leverage our knowledge, strengths and resources to deliver our customers with best-in-class products and technologies across all verticals and channels.”
Founded in 1996, Openbet currently supplies the largest share of tier 1 bookmakers, its clients include Ladbrokes, Coral, Paddy Power Betfair, Sky Bet and William Hill. Openbet’s position as leading betting technology provider will likely see NYX Gaming and its equity partners, William Hill and SB&G restructure the company and its assets to avoid conflict with existing clients.
Key client Paddy Power Betfair showed its support for the acquisition as James Midmer, Head of Corporate Communications commented, “We look forward to working with NYX and OpenBet and are confident that the combined group will continue to deliver a great product and service”.
The binding agreement reached by NYX Gaming and Openbet is subject to customary conditions and approvals, including regulatory and stock exchange consent. Stakeholders expect to close the deal by May 2016 and no later than 3 months after executing its initial agreement.
