MONTREAL, Feb. 11, 2014 /CNW/ - Amaya Gaming Group Inc. ("Amaya" or the
"Corporation") (TSX: AYA), an entertainment solutions provider for the
regulated gaming industry, announced today that, pursuant to a share
purchase agreement dated November 27, 2013 (the "Share Purchase
Agreement"), one of its subsidiaries has completed the previously
announced sale to Goldstar Acquisitionco Inc. ("Goldstar") of all of
the issued and outstanding shares of WagerLogic Malta Holdings Ltd.
("WagerLogic") for $70 million (the "Purchase Price"), less a closing
working capital adjustment of $7.5 million, satisfied through cash
consideration of $52.5 million and a vendor take-back in the form of a
promissory note of $10 million, bearing interest at 6.0% per annum
payable semi-annually in arrears starting in the second year following
the closing date and due on the fourth anniversary of the closing date.
The Purchase Price is subject to customary post-closing adjustments.
WagerLogic, through a subsidiary, is an online casino operator through
its "Inter" brand consisting of InterCasino™, InterPoker™ and
InterBingo™, amongst other online names (the "InterCasino Business").
Revenue and net income of the InterCasino Business were US$8.0 million
and US$1.8 million respectively for the nine month period ended
September 30, 2013. Revenue and net income for the full year 2012 were
US$17.2 million and US$5.8 million respectively.
Subsidiaries of Amaya will continue to supply WagerLogic with software,
services and content to power the InterCasino Business pursuant to a
The Share Purchase Agreement includes an earn out agreement pursuant to
which the vendor thereunder may receive additional cash consideration
payable on the second and third anniversary date from closing based on
the achievement of certain revenue targets, as well as a minimum
revenue guarantee agreement pursuant to which the vendor, in the first
two years following the closing, may pay cash consideration if certain
revenue targets are not achieved by the InterCasino Business.
Osler, Hoskin & Harcourt LLP served as Canadian counsel to Amaya and its
subsidiaries and Chitiz Pathak LLP advised Goldstar in connection with
Amaya provides a full suite of gaming products and services including
casino, poker, sportsbook, platform, lotteries and slot machines. Some
of the world's largest gaming operators and casinos are powered by
Amaya's online, mobile, and land-based products. Amaya is present in
all major gaming markets in the world with offices in North America,
Latin America and Europe. Amaya recently acquired Cryptologic, a
pioneer within online casino, OnGame, a leader within online poker, and
Cadillac Jack, a successful slot machine manufacturer. For more
information please visit www.amayagaming.com.
DISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTS
Certain statements included herein, including those that express
management's expectations or estimates of our future performance
constitute "forward-looking statements" within the meaning of
applicable securities laws. Forward-looking statements are necessarily
based upon a number of estimates and assumptions that, while considered
reasonable by management at this time, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Investors are cautioned not to put undue reliance on
forward-looking statements. Except as required by law, the Corporation
does not intend, and undertakes no obligation, to update any
forward-looking statements to reflect, in particular, new information
or future events.
SOURCE: Amaya Gaming Group Inc.
For further information:
For inquiries, please contact:
Director, Investor Relations
+1.416.545.1453 EXT. 5833