On Tuesday, the Toronto-listed NYX announced that it had agreed to pay a maximum £24.5m for Betdigital, based on an undisclosed upfront cash payment and an earn out over three years. The total payable is based on a 2.51x multiple of Betdigtal’s earnings.
Launched in 2011, Betdigital provides gaming content and systems to online, mobile, interactive TV and land-based gaming platforms in the UK. Betdigital CEO Heath Samples said his firm would “help NYX gain maximum returns from their plays for omni-channel expansion.”
NYX CEO Matt Davey said Betdigital’s “unique flavor of regional expertise and omni-channel content” would allow NYX to “strengthen our reach and underpin the global content strategy of the company.” Davey said both NYX and its new OpenBet division – a Betdigital customer since 2013 – would benefit from the Betdigital bolt-on.
Last week saw NYX turn in its Q1 earnings report, which showed revenue up 89% to C$18.8m (US $14.4m) thanks to last year’s acquisition of Amaya Gaming’s B2B software brands Chartwell and Cryptologic. Absent those contributions, organic growth was up 32% to $13.1m. Adjusted earnings doubled to $4.8m.
While revenue was rosy, costs associated with NYX’s pursuit of OpenBet resulted in the company reporting a net loss of $9.1m for the quarter. OpenBet is expected to account for roughly 55% of NYX’s revenue in future quarterly reports.
The quarter was a busy one for NYX, which signed 12 new clients – including Paddy Power, Marathonbet and Telecinco – to NYX’s Open Gaming System. The quarter also saw NYX launch product for licensees including Stanleybet as well as Italian operators Sisal and SNAI.