This Thursday, 20th September, the New York-based provider of products and services for the gambling industry Scientific Games Corporation came up with a shocking revelation that shook the gambling industry. The company announced that it is to buy Canada’s online casino games supplier NYX Gaming Group for C$775 million ($631 million). The company pointed out that the acquisition of NYX Gaming Group is the main driver of its continued growth in the quarters after the deal’s closure. According to the two companies, the deal is most likely to be finalized in the first quarter of 2018.
Scientific Games is to further delve into the world of iGaming with the acquisition of NYX for the total amount of C$775 million. This move can be defined as strategic as Scientific Games is to expand its portfolio and ramp up its product development. The announcement comes 2 months after Scientific Games expressed its willingness to acquire Red7Mobile, a mobile producer and desktop casino games developer headquartered in the UK. But details of the transaction have remained undisclosed.
By joining forces with NYX, Scientific Games will be able to further expand through the operation of a number of brands. The acquisition deal aims to empower the buyer’s catalog with NYX’ products, including Nyx’s OpenBet sportsbook platform.
Key Information about the Acquisition Deal
Under the terms of the purchase deal, Scientific Games is set to pay C$775 million, which is equivalent to CAD$2.40 per share. Besides the amount, which the buyer is to pay with cash on hand, Scientific Games is to obtain NYX’ debt. In that sense, the deal represents 112% over NYX’s value at the close of the trading stock on 19th September. It is expected that only a year after the finalization of the acquisition deal, Scientific Experience is to increase its net profit. Commenting on the latest addition to Scientific Games’ list of partners, the company’s President and Chief Executive Kevin Sheehan said that besides enriching Scientific Games’ end-to-end portfolio, the company is also to add innovative and engaging sports betting platforms and distribution content.
NYX’s shareholders are currently expecting to receive copies of the Arrangement Agreement and a complete information regarding the deal. This is set to happen prior to the special meeting, when the shareholders are to vote on the plan of the deal. Pending the announcement of the acquisition deal, shares of NYX were put on hold temporarily but following the announcement, these rose to 106%, or C$2.33 per share on the Toronto Venture Exchange. Scientific Games’ shares, on the other hand, witnessed little, if no, change in the price, trading at $43.15 in New York.