Nasdaq gambling technology supplier Scientific Games Corporation (SGC) has moved to significantly bolster its digital gambling operations by detailing that it has entered ‘a definitive agreement’ to acquire Toronto TSX-listed NYX Gaming Group, owner of leading sports betting supplier Openbet.
Updating the market this afternoon, SGC governance has detailed that it will propose a CAD $2.40 per share offer to acquire all outstanding NYX shares, valuing its deal at CAD $775 million ($635 million).
The cash and debt deal will represent a circa 112% premium on NYX’s Tuesday closing share price of CAD $1.13.
In its market update, SGC governance detailed four key strategic reasons for the acquisition, stating that it will gain; 1) NYX’s digital gaming portfolio for its global lottery distribution network, and 2) a new foothold in the global sports betting sector adding leading OpenBet platform and systems to its provisions. It will also 3) accelerate the growth and services of SGC’s all-round interactive division whilst 4) strengthening SGC’s market position within the global gambling sector.
Updating investors, Kevin Sheehan, Scientific Games’ President and Chief Executive Officer commented on the acquisition: “This important transaction creates a global gaming and lottery powerhouse. Scientific Games will be a stronger industry leader offering one of the broadest end-to-end portfolios of engaging content, innovative technologies and digital products and services across gaming and lottery.
“This strategic and financially compelling acquisition combines NYX’s premier digital gaming and sports betting platforms and expansive distribution network to our own global, industry-leading content, technologies and digital products and services. NYX ideally positions us to capitalize on the growing online gaming and sports betting markets.”
Founded in 1999, NYX Gaming has become one of the leading player in igaming and sports betting technology and platform provisions growing its business assets through strategic M&A.
The company has targeted becoming the industry’s global leader in omni-channel solutions, bridging land-based and digital capabilities. In May 2016, NYX undertook its biggest acquisition to date taking in part in a three-way (NYX+William Hill+ Sky Bet) £270 million buy-out of OpenBet technologies from private equity firm Vitruvian Partners.
Confirming the sale, Matt Davey, Chief Executive Officer of NYX informed stakeholders: “Scientific Games’ acquisition of NYX will provide immediate and compelling cash value for our shareholders, expand the products and solutions we are collectively able to offer our customers and accelerate the execution of our long-term strategic plan.”
NYX’s digital client portfolio includes William Hill, Sky Betting & Gaming, Coral UK and Caesars Interactive. Moving forward, SGC governance will appoint Matt Davey as new President of Digital Gaming for its new combined portfolio.
“We will now have scale, content and product development capabilities, complementary global infrastructure and access to an expanded customer base. We believe Scientific Games is the ideal partner for NYX, and we look forward to working alongside the talented Scientific Games team.” Davey added