Amaya Gaming Group have agreed to sell their online casino subsidiary, WagerLogic, to Goldstar in a deal worth a reported $70m and change.
Amaya Gaming Group have been grabbing the neon lights of the iGaming news with their acquisitions, and so its not a surprise that they eventually had to let something go, with the Canadian outfit agreeing to ship their online casino outfit, WagerLogic, to Goldstar.
As you would expect with a deal of this magnitude there are a few caveats that will affect the final asking price, expected to be in the region of $70m. There will be an earn out agreement whereby Amaya could earn extra lolly should WagerLogic hit certain revenue key performance indicators (KPIs) within the next three years, and that is countered by a minimum revenue guarantee slapped onto the side of the bid by Goldstar.
The deal does not affect the relationships that Amaya’s other subsidiaries have with WagerLogic, including software, service and content used to power its online casino operations. The deal is expected to be concluding lock, stock and two smoking barrels by the time Rudolph takes flight on 31st Dec 2013.
“The proposed sale of these business-to-consumer assets is consistent with our strategy of focusing primarily on being a single source business-to-business supplier of diversified gaming solutions to gaming operators,” said David Baazov, CEO of Amaya Gaming Group Inc. “We anticipate this divestiture will allow us to expand our existing relationships and cultivate new ones with online gaming operators.”
The sale comes after Amaya’s numerous acquisitions resulted in a Q2 net loss of $11.4m, despite reported revenue of $37.1m (a 157% increase year on year). Online gaming company Cryptologic, US slot machine manufacturer Cadillac Jack and the Ongame poker network all increasing the cost base of the Canadian gaming company.
It was just a month ago that Amaya announced a separate deal with the US brick and mortar casino operator Caesars Entertainment, that would see them powering the Caesars Interactive Entertainment (CIE) online casino business in New Jersey.