NYX – Toronto Listed Company Acquires OpenBet
NYX Gaming Group, the online gambling technology company that is listed in Toronto has confirmed that it has acquired the rival betting technology company Openbet for 270 million pounds. This last Monday, NYX has made an announced that it has agreed to the deal to pay 270 million English pounds to Vitruvian Partners LLP hedge funders, who are the owners of the Openbet, in cash. NYX has also stated that it would fund the deal partially through a 80 million English pounds contributed from William Hill, the UK gambling giant, as well as 20 million pounds from SB&G (Sky Betting and Gaming).
William Hill is also going to take a 10 million pounds stake in NYX and it has already inked a deal that would last 10 years that would help Hills sport betting, retail and gaming platforms. This includes the release of a new platform that is going to be released sometime during the upcoming 3 years. The investment of William Hill is going to give it a nineteen percent stake in NYX Gaming, while Sky Betting and Gaming is going to claim 5 %. The two companies are already existing clients of Openbet, but neither of these firms are going to claim a seat on the board of directors of OpenBet or have any access to information of the other clients of Openbet. This move was integral in order to maintain the independence of Openbet, as was stated by the Chief Executive Officer of NYX, Matt Davey. The involvement of William Hill in the pursuit of NYX Gaming of Openbet was revealed back in February, but the involvement of Sky Betting and Gaming is going to spur a lot of rumors that William Hill might be on the lookout for a bigger chance to join the acquisition and merger party as many of the rivals of William Hill in the United Kingdom has joined their forces to have a better chance at surviving and competing during last year.
This new deal is going to allow NYX Gaming, which used to offer poker and casino products to offer its players a complete internet gambling package to all of its future as well as current customers.
NYX Gaming has also stated that it is going to sell the European facing portion of its poker business, Ongame, to a partner that has proved experience in the online gaming industry. This partner is going to be responsible for all costs, technology development and consumer contracts. On the other hand, NYX has stated that it has retained a big share of the new business, as well as other exclusive rights to use the product of Ongame in the content of North America. NYX has acquired Ongame from Amaya Gaming back in November of 2014, which was an underperforming company, and the product has generated losses in 7 figures following the acquisition.