Amaya Gaming Group closes acquisition of Ongame Network
MONTREAL, Nov. 1, 2012 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the "Company") (TSXV: AYA), an entertainment solutions provider for the regulated gaming industry, announced today that it has completed the purchase of Ongame Network Ltd. ("Ongame"), a leading business-to-business (B2B) online poker network, from bwin.party digital entertainment plc ("bwin.party"), for up to €25 million.
The purchase price is €25 million on a cash-free and debt-free basis. The price includes a contingent consideration of up to €10 million, which will become payable by Amaya if there is regulated online gaming in the United States within five years of completion of the acquisition. The exact amount of the contingent consideration will depend upon the extent of U.S. regulation of online gaming, including the number of states that regulate it and the total population living in those regulated states.
"We're extremely excited to have acquired Ongame, one of the world's largest B2B online poker providers," said David Baazov, Chief Executive Officer of Amaya. "Online poker accounts for a substantial portion of the online gaming market. The acquisition of Ongame provides access to that market and positions us to capitalize on the regulation of online poker in new jurisdictions with quick deployment of Ongame's proven, secure and scalable platform. It also complements our existing online interactive product offering and enables us to offer a full suite of gaming platforms to regulated operators."
Ongame's global online poker network includes 25 of the e-gaming industry's strongest brands, owned by a total of 19 operators in regulated jurisdictions, and currently reaches more than 20 million customers in over 25 markets. Ongame also operates regional networks in France, Italy and Spain. The company offers both operators and their players a wide variety of cash games and tournaments to choose from. Further information about Ongame can be found at www.ongame.com.
"Amaya is intent on developing long-lasting relationships with Ongame's existing clients by continuing to deliver a competitive poker product and adding new players to the network," added Mr. Baazov. "We also look forward to unleashing the full potential of Ongame's technology by leveraging Amaya's existing B2B and government partnerships and exploring potential B2C joint ventures."
Expected Benefits of the Acquisition
Positions Amaya to participate in the U.S. market as regulation online
Complements and strengthens Amaya's B2B interactive product portfolio
Provides Amaya with the ability to deliver complementary and value added
services to its existing and new licensees
- Offers potential for cost savings through synergies
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
ABOUT AMAYA GAMING GROUP INC.
Founded in 2004, Amaya Gaming Group Inc. is a technology based gaming provider for the regulated gaming industry. An expansive global organization, present in North America, Latin America, Europe, and Asia, Amaya is an innovator in the gaming world.
Headquartered in Montreal, Canada, Amaya provides a host of services and solutions that range from: online and mobile gaming casino games and platforms, traditional and mobile lotteries, networked electronic gaming systems, hospitality in-room entertainment systems, management systems, content suites, advisory and management services, and integrity monitoring and auditing systems for the regulated gaming markets. For more information please visit www.amayagaming.com or www.amayaonline.com.
DISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTS
This press release contains forward looking statements with respect to Amaya Gaming, including the expected benefits to Amaya of completing the acquisition. Although Amaya believes that the expectations reflected in such forward looking statements are reasonable, such statements involve risks and uncertainties and are based on information currently available to Amaya. Actual results may differ materially from those expressed or implied by such forward looking statements. Factors that could cause actual results or events to differ materially from current expectations, among other things, include risks related to market factors, retention of key officers and contracts of Ongame Network, ability to achieve the expected benefits of the acquisition, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time including matters discussed under "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2011. These forward-looking statements are made as of the date hereof, and Amaya assumes no obligation to update or revise them to reflect new events or circumstances.
SOURCE: AMAYA GAMING GROUP INC.For further information:
Mr. Darcy Krogh
VP, Business Development
Amaya Gaming Group Inc.
416-815-0700 ext. 251