MONTREAL, Oct. 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 entered into an
arm's length definitive agreement to acquire Ongame Network Ltd.
("Ongame"), a leading B2B online poker network, from bwin.party digital
entertainment plc ("bwin.party").
Amaya has agreed to acquire Ongame for a cash consideration of €15.0
million on a cash-free and debt-free basis, which will be funded
through its existing cash reserves. Additional contingent
consideration of up to €10.0 million will become payable by Amaya
Gaming 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 the regulation
based upon the number of states that regulate and the total population
Ongame is one of the world's largest B2B poker providers. The global
network includes 25 of the e-gaming industry's strongest brands that
are owned by a total of 19 operators in regulated jurisdictions. Ongame
also operates regional networks in France and Italy. Ongame 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.
"The acquisition of Ongame bolsters Amaya Gaming's product portfolio,
transforming Amaya into a leading provider of gaming platforms," said
David Baazov, Chief Executive Officer of Amaya Gaming. "Amaya looks
forward to unleashing Ongame's technology to its full potential through
the leveraging of our many B2B relationships and delivering new
partners and players to the network. The Ongame platform is scalable,
proven and secure and is well suited for quick deployment in new
regulated markets. We're excited about the wide range of opportunities
this acquisition makes possible for us as we execute on our vision."
Commenting on the announcement, Jim Ryan and Norbert Teufelberger, the
Co-CEOs of bwin.party, said: "The sale of Ongame conforms to our
strategy, especially as we move closer to launching our single,
proprietary technology platform in the next few months. We believe
Ongame will fit well into Amaya Gaming and has an excellent future
Expected Benefits of the Acquisition
Positions Amaya to participate in the US market should the government
decide to regulate online poker
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
The transaction is subject to the standard terms and conditions for a
transaction of this type as well as certain regulatory approvals and is
expected to close during the fourth quarter of 2012.
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.
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, Africa
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.
bwin.party digital entertainment plc (LSE: BPTY) is a global online
gaming company, formed from the merger of bwin Interactive
Entertainment AG and PartyGaming Plc on 31 March 2011. Incorporated,
licensed and regulated in Gibraltar, the Group also has licences in
France, Italy, Spain and Denmark. With offices in Europe, India, Israel
and the US, the Group generated total pro forma revenue of €816.0m and
pro forma Clean EBITDA of €199.3m in 2011. bwin.party commands leading
market positions in each of its four key product verticals: online
sports betting, poker, casino and bingo with some of the world's
biggest online gaming brands including bwin, PartyPoker, PartyCasino and Foxy Bingo. The Group's scale, technology and strong portfolio of games
collectively differentiate its customer offer from those of its
competitors. bwin.party is a constituent member of the FTSE 250 Index
and the FTSE4Good Index Series, which identifies companies that meet
globally recognised corporate responsibility standards. For more
information about bwin.party, please click here.
This press release contains forward looking statements with respect to
the 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
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.
1 Adjusted EBITDA as defined by the Corporation means earnings before
interest and financing costs (net of interest income), income taxes,
depreciation and amortization, stock-based compensation, restructuring
and other non-recurring costs, non-controlling interests, and Loss
(Gain) on currency conversion . Adjusted EBITDA is a non-IFRS measure.
SOURCE: AMAYA GAMING GROUP INC.
For further information:
Mr. Darcy Krogh
VP, Business Development
Amaya Gaming Group Inc.
416-815-0700 ext. 261