Gaming company confirms acquisition of Ongame and files prospectus for a Canadian IPO
NYX Gaming Group Limited has confirmed its acquisition of the Gibraltar-based Ongame online poker network from Amaya Gaming (see previous InfoPowa report), and announced that it has started a process for an initial public offering (IPO) in Canada.
The company says that the Ongame business will complement NYX Gaming Group's casino, bingo and lottery solutions in Europe and the US, and that the purchase price is equivalent to eight times Ongame's 2015 EBITDA, less any required working capital.
NYX chief executive Matt Davey said Monday:
"Ongame is renowned in the gaming industry for its excellent poker products, platform and service. Not only does this acquisition provide NYX Gaming Group with one of the best poker products in the industry, it also gives us access to products that are regulated in several jurisdictions, and more importantly a talent pool that can help grow all parts of our business.
"The addition of Ongame is in line with our objective to continue to grow in Europe and the United States. We are committed to the integration and development of Ongame's B2B poker network. Further, through this transaction we will strengthen our relationship with one of the most successful gaming companies in the world, the Amaya Gaming Group."
Concurrently with the acquisition, Amaya Gaming has invested in NYX Gaming Group through its subscription for a $10 million unsecured convertible debenture, thereby expanding the existing relationship between the parties. The convertible debenture matures two years from the date of issuance and bears interest at 6 percent per annum, payable at maturity. Interest and principal are payable in NYX Gaming Group's ordinary shares at Amaya Gaming's option.
The statement also gives details on a proposed IPO for the company, advising that NYX Gaming has filed a preliminary long form prospectus dated with the securities commissions of each of the provinces and territories of Canada in connection with the initial public offering of its ordinary shares.
The offering is being underwritten by Canaccord Genuity Corp., as lead underwriter, and Cormark Securities Inc., National Bank Financial Inc., Dundee Securities Ltd., Global Maxfin Capital Inc. and Mackie Research Capital Corporation.
Online Casino News Courtesy of Infopowa